Buy A Car With Bad Credit

Posted by admin on December 19th, 2008 at 12:00am

Question:
Can I buy a car with bad credit?
I wish to buy a car with bad credit. I have 8 thousand to spend for a down payment, but I want about a 13 thousand dollar car. Will lenders cooperate with me on that? Do you believe the typical car lot would lower the car to just about ten thousand and then finance the remaining balance?

Answers:
They probably would if you have eight thousand for a down payment. That should demonstrate to them that you are serious and are adequately responsible with money in spite of what may be in the past. your rate of interest will just be bigger, that’s all.

With eight thousand in ,cash anybody could finance the rest. By the way, why can’t you buy a car for eight thousand instead of your 13 thousand dollar budget? In a single year your 13 thousand dollar car would be worth 8 thousand anyway. Why throw away all that money?

Personally, I would just take the 8 grand and purchase a vehicle. I have had bad credit. I also paid cash up front for my car. I went to my bank and applied for a loan. i used my other car for collateral. I asked for a 2 thousand dollar loan. Then I put in my payments on time each and every month and now my credit is improving quite a bit, so I am building decent credit and in a couple years, I should be able to buy a car with bad credit.

There are many car lots that may carry the loan and report it to the credit bureaus. A lot of the time, the interest rate is huge, but re-establishing credit is worth it. A lot of lenders will extend the loan to you and let you buy a car with bad credit if the reason for the bad credit has been resolved.

Yes, and I would recommend that you buy something new, not a used car. The main reasoning behind this is for two reasons. First of all, you can get rebates and with a down payment this looks a lot better to the financing companies. Secondly, you are able to finance longer, which will lower your payment so that you will be able to handle it because the interest rate are going to be high. I have witnessed them as high as 21 percent when I was selling vehicles.

Under Cars and Bad Credit