What's the Deal with Bad Credit Auto Dealers?
Between countless corny TV commercials, millions of Google Ads, and the still-ubiquitous bad credit auto advertising by way of billboards, it's easy to become jaded about the process of financing a vehicle (especially if you or a loved one happen to be battling poor credit). Plus, advertising is geared to make you feel aspirational--while selling you on any given product. Bad credit auto dealers, and the automotive industry at-large, are experts at advertising to the American driver. But are dealerships actually looking out for their customers' best interest?
What to Look for In An Auto Dealer
If you're in the percentage of Americans that have great credit, chances are, you've discovered that getting a car in America is as simple as pointing, clicking, and picking up your new car. But if you don't have banks fighting to finance you, what are your options?
The most basic need you probably have is finding reliable used transportation. Which, depending on whether you're a cynic or an optimist, can be a bit of a fool's errand. So, for you used car shoppers out there searching for a car loan despite having bad credit, make sure the very first thing you look for is transportation that's fitting your needs--not your wants. Sure, everyone likes a brand new Chevrolet Silverado. But does everyone need one? Sorry, Chevy, but no. Not everyone needs a massive two ton pickup with heated leather seating and a collision warning system. Most drivers just need to be safe, and not break the bank.
After isolating vehicles that actually suit your needs, further narrow your options to vehicles that fit your budget, and, ideally, come with a warranty. Craigslist can be great for finding that diamond in the rough that cost $2,000, but you're rolling the dice when it comes to car care, and car inspections. Remember: you may be a savvy shopper, but there are just as savvy sellers on Craigslist--most of them looking to get rid of something that they know isn't performing at peak any more.
Where Do Bad Credit Dealers Come Into Play?
Once you've developed a realistic outlook on your needs and finances, it's important to make sure you know what your credit score is. Run a free credit score report, and known that a bad credit car dealer will be taking that score into account when it comes time to see how much money they can safely offer you. The lower your score, the riskier of a bet you will be. If you can wait a few months to beef up your score before applying for a loan, do it.
Bad credit auto dealers chiefly exist to provide financing to drivers who probably wouldn't otherwise be able to get a car loan. Pro tip: The bad ones don't report your on-time payments to the credit bureaus; the good ones do. But, they're only as great as their customers, and the better customers will be those committed to a finance program that encourages healthy spending and budgeting habits. In fact, many drivers are able to get into a lower interest rate after a designated "good behavior" period.
If you're ready to reach out to a bad credit auto dealer, please contact us directly so we can set up a time with a finance specialist who will work with your credit, and design a finance program that's right for your needs.