Auto Bad Credit

Posted by admin on May 31st, 2009 at 12:00am

Question:
How would the auto bad credit or no credit sales operate?
I wish to get a car but have poor credit, how do these auto sales work where they say bad credit or no credit?

Answers:
They issue their services to high credit risks by increasing the selling price and interest rates on their loans .
For instance, they can sell a $5,000 car for ten thousand and require a $4,000 down payment and an interest rate of twenty percent. In this situation, they only need to collect payments of a thousand dollars to break even on this deal.
If you do not make the payments they can take away your car and you would lose your down payment. If you follow through on the payments, they maximize their own profits .

It basically means they are willing to deal with individuals with auto bad credit scores. It also means that you’ll have to give them a premium, which is basically a higher interest rate.

it means they will likely issue you a loan, but they will ask for large down payments or charge you with a really high interest rate.

The answers given by others are correct on how the auto bad credit sales work, but I simply wanted to add that your best situation would be to get your credit repaired. I used to have poor credit, too. I worked with a bad credit repair company and were able to get it cleaned up. The process takes a couple of months, but the result is incredible. Check out the internet website of Unified Credit Services, as they are the company that I worked with and suggest you go with.

Under Cars and Bad Credit