How to NOT Buy Used Cars with a Bad Credit Score?
The advertisements that you see from buy here pay here no credit check car lots make the concept pretty straightforward. If you have a bad credit score and need to buy a used car, you can simply walk through the doors of such dealerships, apply for a loan, pick any vehicle you want from the lot and drive out all smiling. However, even you know somewhere deep down that the process cannot be just that easy.
There is a right way to buy used cars with a bad credit score and there is a wrong way. We address the latter here. Here are 4 ways in which you should not buy used cars with bad credit scores.
1. Pick the dealership offering you the highest loans
It may seem like a good deal but you will have to pay off the loan. And a high loan amount means high interest rates which are ultimately revenue for the dealership. Going forward, if you cannot pay your premiums, the dealership will take possession of your car and you will lose both your money and your mode of transport. High loans that you cannot afford do not do any good to you. Hence, the top buy here pay here in Easley checks your credit report before approving your auto loan. You get the exact amount that you can afford.
2. Choose credit plans with low monthly premiums
Many buy here pay here no credit check car lots use this tactic to mask the effects of a high loan amount on your monthly budget. They drag the loan span to 5-7 years that reduce your monthly premium payments and you get impressed not knowing that it inflated your interest rate payable as well. Avoid such credit plans. The optimal credit span for bad credit score holders is 3 years. This keeps the interest rate in check and you pay less overall.
3. Pay a fixed down payment to approve your loan
Again, many dealerships allow their customers to buy used cars with bad credit scores only if they pay a fixed amount in down payment. This figure secures most of the price that the dealership paid to procure the vehicle and they look to reduce the risk that they are exposed to. Now, there is nothing wrong with this strategy but as a customer, you are entitled to pay the down payment that you can currently afford. In Family Auto of Easley, we have flexible down payment plans that facilitate the same despite your bad credit score.
4. Settle for mediocre used cars
If you hear narratives like – only these cars over here are for bad credit score holders or we cannot afford to give you warranties as we are already taking a risk by funding you – leave the dealership immediately. Your credit score has nothing to do with used car quality. The dealership is not doing any favours by helping you finance your car. In the top buy here pay here in Easley, you get only quality used cars backed by sure warranties and that is where you should shop for your next vehicle.
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