Buying a Car with Bad Credit - Tips and Tricks to Save MoneyApril 14
This can be a major task for most individuals. This is a time when many individuals can become frustrated and overwhelmed due to being turned down for approval for car loans. However, these individuals do not have to feel this way, because there are some ways that they can help themselves deal with the little tricks that car dealerships will throw at them so that they will have a counter attack.
When an individual walks onto a car lot to buy a car with bad credit, the salesmen will begin to swarm the individual like sharks after a piece of fresh meat. Once a salesman has got the individual talking, then it will not take long for the salesman to determine what type of credit the individual has by simply talking to them. This is how the salesman begins reading the individual so he will know in which direction to lead them in purchasing a car.
Once the individual has selected a car, the salesman will keep them focused on payments.
This tactic is used to keep the individual’s focus off the true price of the car as well as the interest rate being charged on the car loan. The individual does not become totally aware of the actual price until they see the finance manager as they are completing the sale of the car, which is why it is so vital to keep focused on the price of the car instead of the monthly payments.
Any car dealership that offers any type of in-house financing such as ‘Buy Here, Pay Here,’ or ‘We Tote-The-Note,’ should always be avoided. Individuals will pay twice as much for a car than what it is worth due to increased interest rates and overpriced cars. You will not be able to rebuild your credit with these types of car dealerships either since they do not report to any major credit bureaus.
The biggest payment trap that individuals can fall into when they have a poor credit standing is doing business with car dealerships that offer in-house financing such as the ones that advertise, ‘Buy here, Pay here!’ These individuals need to be aware of the financial solutions available to them, which can aid them in being approved for a car loan that will help them re-establish their credit history.
Any car dealership offering their own financing should always be avoided at any expense. These types of car dealerships will mark their cars, which regular car dealership are unable to move off their lots, way above the normal retail value. Individuals who are having financial troubles are preyed upon by these types of car dealerships and they will also charge them the highest rate of interest they possibly can. In fact, it is not uncommon for an individual to end up having to spend as much as 95% more for a car at one of these types of car dealerships.
Another tactic that car dealerships will try to trap these individuals into is when they are in the middle of the negotiating the price of the car, then they will begin to get the individual’s focus place strictly on the monthly car payments instead of the true price of the car. The reason car dealerships do this is to the individual for focusing on what they will actually be paying for the car since the interest rates and any extended warranties will be hidden within the contract until the contract is completely finalized. Individuals need to realize that everything can be negotiated until that contract is signed, but after that everything is set in stone.
Individuals need to skip the middle men, who are the finance departments at the car dealerships, and go directly to the lenders themselves. There are several sources available to individuals with bad credit on-line who will provide them with the financing they need no matter how bad their credit history might be. When you are pre-approved for a car loan, then you are more able to negotiate with the car dealerships by making a direct offer on a car.
14 Apr 2010 | 9:07 pm | Automotive
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