Discover How You Can Buy A Car With Bad Credit With No Money Down
The truth is that you can indeed buy a car with bad credit with no money down, but there are a few things you need to be aware of before you rush in to see your local car dealer.
The Most Common Reason For A Down Payment Requirement
Many dealers will require a down payment on the purchase price of the car because it allows them to minimize their risk exposure. In a simple sense, they lend you less, and so don’t have to worry about you defaulting on the amount loaned or financed. Whilst this will certainly make your chances of getting approved for the loan greater, it’s not to be confused with certainty. In fact, many people believe that due to their bad credit standing, dealer financing is the only option. They then trump up the huge down payment without exploring their options.
Something Else You Need To Know About Car Dealerships
Most people are aware that dealerships tend to inflate the price of the car, especially when they know they are dealing with someone who has bad credit and is desperate. What most people don’t know however is that they also inflate the interest charged on the loan too. They do this by giving you a quote over and above the one agreed upon by the finance company; who of course the dealer is in contact with behind the scenes.
This practice needless to say, is very sinister, but sadly not illegal in a strict sense. The only thing you can do is to be vigilant and use the strategy we’ll outline in the next paragraph.
How To Avoid Dealer Financing
There are plenty of specialist lenders online who offer deals that let you buy a car with bad credit with no money down. These lenders offer what is called pre-arranged financing, which means long before you set foot into a dealership, your loan is approved. All that’s left for you to do then is simply pick the car of your choice that is within your budget.
- Instant Auto Loan – Discover 3 Secrets To Instant Approval
- Auto Finance Company – 3 Qualities To Look For When Choosing A Good Company
- Auto Loans For Used Cars – 3 Tips To Get A Loan And Car Today!
- Refinance My Auto Loan – Discover The 2 Step Process For Instant Success
- Auto Loans For People With No Credit – Discover The Number One Source