TIPS FOR BUYING A CAR WITH SUBPRIME CREDIT
Set realistic goals for your purchase. If you have sub prime credit your goal should be to improve it. One of the basic facts you have to face is more money needs to be coming in each month than going out. If your car purchase exceeds the limitations of your budget (experts feel 20%of your net monthly income is proper) you are heading for disaster. Unless a substantial increase in your net monthly income is on your horizon, stick to a budget for your purchase.
Look at used cars or program cars. One of the best ways to keep your goals realistic is look at late model used or program cars. Program cars are rental returns and are usually a bargain compared to new. Late model used cars including “certified” used cars are also a great value. Certified used cars usually go through a more rigorous inspection than a normal used cars. It still requires you as a consumer to still do your homework and make sure it is within your budget and will fill your automotive needs. Consumers typically have reverse equity after a purchase unless they put a substantial amount down. Make sure you are happy with the car as it might be impossible to trade out of it within the first couple of years of ownership.
Don’t rely on the dealer. It’s the dealers job to sell you a car. It’s your job to see you get a good deal. Checking your credit, setting your budget and knowing what your trade is worth is not their job. Most dealers are honest. However they are in business to make a profit, so make sure you have your facts and research done before visiting them. Most dealers appreciate you doing some homework before you look for your next car. It makes it easier for them to sell you if you know what you want and they have it.
Check insurance rates gas mileage and reliability ratings. If you are buying a car with sub prime credit make sure you can afford to drive the car. The car payment is just one of the factors that go into ownership. An inexpensive car with poor gas mileage and high car insurance could end up costing you more than a newer more fuel efficient model with a slightly higher asking price. If the car is out of warranty check the reliability rating to make sure there will not any issues with it lasting for the duration of the loan.
Check your credit report. See our section on CAR BUYING AND YOUR CREDIT – THE BASICS. It’s important to always know what is on you credit report. However if sub prime credit is involved it is simply a must. Most dealers can supply you with sub prime financing alternatives, but the consumers that shops for their financing before they look for a car usually save money. CapitalAutoLoan.Com’s web site is one of the alternatives today’s consumers have. Do your homework before heading to a dealer. This prevents you from ending up at a dealership that is not equipped to handle your special needs.
Shop around before going to a dealership. Dealerships advertise to let consumers know where the bargains are. Take advantage of their offers. They spent money trying to get consumers to their dealerships to purchase from them. Take advantage of the ones that seem to be trying harder than the rest. |
