Buying a car is hard enough, but it can be an even more stressful experience if you have bad credit. Here’s what you can expect so you can see them coming and plan ahead accordingly.
The Dealership May Not Try Hard Enough
Some dealerships just don’t have the right connections to get you a good deal, even with your bad credit. You don’t want to ask a traditional lender for an auto loan if you have low credit because they are not interested in these types of loans; they deem them too risky. A dealership with these kind of lenders will try once or twice and then throw their hands up in defeat.
The right lender for bad credit will not be scared of making the loan, and they also won’t gouge you with a sky-high interest rate. They’ll have their go-to bad credit lenders in place and will know who to call based on your situation. A totally different experience!
You Might Get Turned Away
You could find yourself at a dealership that won’t be able to help you. They may turn you away and say they’re sorry but there’s nothing they can do. This can be very frustrating and embarrassing. However, it just means you went to the wrong dealership.
When you find a car you like online, be sure to call the dealer and ask what sort of credit requirements there are. That way, you can save yourself the time and hassle of getting rejected when you go in to take a look.
They Might Take Advantage of You
When you have bad credit, some unscrupulous dealers will structure the contract in a sneaky way. You won’t really know how much you’re paying in interest or how much you’ll pay over the life of the loan. You should be especially careful if you have your heart set on a car because this makes it more likely to shut down the rational part of your brain.
It’s unfortunate, but as they say, let the buyer beware. It’s up to you to make sure that you’re happy with how much you’ll be paying. It’s more than just getting the monthly payment down to a price you can afford; you’ll want to know that you’re not paying too much for the car just because of your credit.
Be Careful: You might find yourself stuck in your loan if you’re paying more for the car than you should. The car has a certain market value, and you may find that you owe more than the car is actually worth. This happens when you pay more per month in interest than someone with good or excellent credit.
It Might Take Even Longer Than Normal
Deciding on a car is half the battle, while playing the waiting game is often the other half. Once you’ve selected a vehicle and provided your information, it may take extra time to see if you’re approved or to get you approved.
Because so much is going on at a car dealership, things seem to take a long time. Be prepared for a longer wait, and budget time out of your day so you’re not stressed out with somewhere else to go. At the same time, don’t let the dealer waste more of your time than they need to. Ask how long things will take, and then hold them to their answer.
It’s Not All Bad
Having bad credit is not the end of the world, but it’s going to take a bit of patience and understanding about how things work. Beyond all the frustration and extra charges, at the end of the day you should be able to get a reliable car that fits into your monthly budget.
Whether the process is easy or hard is really up to where you go. When you work with the right dealership, you’ll find that you can enjoy a nice ride even while you’re taking the right steps to get better credit.
Let Us Help You!
At Ride Time, we’re specialists when it comes to getting you into a used car with bad credit. We won’t turn you away, and we’ll go the extra step it takes to get you approved without a lot of hassle. Come see how we’re different, and let us show you all of the options you have.