Buying A Car With Bad Credit. Taking on an auto loan with a monthly payment outside your budget is a surefire way to set yourself up to fall behind and cause more credit damage. You'll probably have a higher interest rate and require a bigger down payment, and you may have a much smaller selection to choose from than someone with a better credit history.
Subprime lenders specialize in helping many credit-challenged buyers get approved for auto financing. Look for a run down dealership in a bad neighborhood, I am sure they would be happy to sell you something. Then, again, it's not impossible, either. "It's possible to buy a new car with bad credit if you know where to look and how to prepare," says Edmunds.com "Contrary to popular belief, there are a number of reasons why a lender would help somebody with a troubled credit history to buy a new car.
Keep in mind that these locally owned lots may also be willing.
Nonetheless, bad credit doesn't always mean that you have to settle for exorbitant interest rates or oppressive terms.
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Another important step in buying a car with bad credit is to determine a realistic purchase budget β and stick to it. Not only that, your credit card will affect the interest cost you pay financing your purchase. When you have bad credit, you may think you're out of luck in the car-buying world.