How to Buy A Vehicle With Poor Credit

The Evans Dealer Group in Dayton, OH believes that everyone should be able to buy a car. That means people with good credit, mediocre credit, and bad credit alike. We know that it's harder to buy a car when you have bad credit. We're going to help you figure out how to get the best bang for your buck when buying a vehicle, no matter your credit score.

Things to Avoid When Buying a Car with Bad Credit:

High Interest Rates

Buying a vehicle with poor credit usually means that you will have a higher interest rate. An interest rate is the added percentage of the loan you take out that you’ll pay back over the course of your loan. This is to be expected. You should, however, avoid anything that's more than twice the average interest rate for car payments. This number will change over time depending on the economy, so your best bet is to look it up before heading out to purchase a vehicle.

The Add-Ons

When you're buying a vehicle, it's always tempting to get extra goodies like heated and ventilated seats or an upgraded sound system. These add-ons can be very expensive up-front. You can, however, purchase a car that already has these upgrades in it, which allows you to finance the extra luxury features you want.

Things to Do Before Buying a Car with Poor Credit

Check with Nonprofits and the State

Some states have programs that help folks buy vehicles. If you live in one of these states and have bad credit, you may qualify for the program. This can help you purchase a car. There are also nonprofits that do the same thing; look around your area and see if you have any outfits like that in town.

Avoid Bad Credit Items

In the run-up to buying a vehicle with bad credit, you'll want to avoid adding further marks to your credit score. This means that you shouldn't open new cards, take out other loans, or run up high balances before applying for vehicle financing if you can avoid it.

What to Do During the Purchasing Process

Make a Large Down Payment

You should make as large of a down payment as possible when purchasing a car with low credit. This will help you secure advantageous financing and will also keep your monthly payments manageable.

Get Financing Pre-Approval

Many banks and dealerships – including ours – will let you get pre-approved for financing. This means that they tell you the maximum amount they'll loan you and the rate at which they will do so. This means that you can go shopping with the knowledge of what you can and cannot afford.

Add a Co-signer

Getting someone close to you who has a higher credit score to co-sign your loan is a great way to get a better rate and even a higher borrowing allowance. This person will also be responsible for the loan, so make sure they’re aware of what co-signing entails.

Buying a Car with Bad Credit

The Evans Dealer Group believes that everyone deserves to be able to buy a car. Our finance team will work closely with you to get you the low-rate financing that you deserve. When you buy a vehicle, new or used, with us, you also get over $3,000 in VIP benefits. We look forward to working with you soon.