There are thousands of bad credit auto dealers who claim they have
the best deals for people with low income or poor credit. There
seems to be one on every corner in larger cities and at least one in
smaller towns. Why are there so many? Believe it or not, these auto
dealers make great money!
But even though bad credit auto dealers (link to: http://www.bestautolenders.com/blog/category/bad-credit-car-dealerships
) are in business to make money, not all of them are out to get the
desperate people who need transportation but don’t have the best
credit report. Many of these dealers have practices in place to help
consumers purchase a decent car and improve their credit at the same
time. This is the type of dealer you want to find.
So, here are 5 steps to finding the reliable and trustworthy bad
credit auto dealers in your area.
Step #1: Do some research.
There are several ways to research about auto dealers in your area.
Ask family and friends if they know of any good car dealers who
are not out to scam you. Many people at one point in their lives
have had to purchase a car this way. Ask around for the best
recommendations and start making a list.
Check Angie’s List (link to: http://www.angieslist.com/) for
reviews. Nearly everyone has heard of Angie’s List. It’s a website
that features real unbiased reviews of local businesses by
customers. Just type in your city and the type of business (in this
instance, bad credit auto dealers) to see a list of businesses in
Newspaper ads in the auto section of your local newspaper should
have one or more of these types of auto dealers.
Visit dealership websites. A lot of bad credit auto dealers today
operate online that’s why they aren’t really that hard to find.
Dealership websites usually contain the company’s contact
information and an online showroom which features some of the cars
they have on the lot.
Step #2: Call the dealers in your shortlist.
Directly contact the dealers in your list in order to get
information about their loan policies, interest rate and
requirements. Don’t look for a car at this time. You’ll want to talk
first to all the dealers to compare their rates and terms. Take
notes and collect any paperwork, like quotes, available. After
comparing, narrow down your list.
Step #3: Prepare to make a deal with either of your top 2 choices.
Go back to your top 2 dealers and explain what type of car you need
and the maximum amount you want to spend. Never act as if you’ll
take any car they have or settle for any loan you can get. Just
because you have a bad credit doesn’t mean you must accept the worst
deal possible. It’s important to take note of how they treat you in
Step #4: Choose a dealer.
Choose the dealer who treats you as if you’re a prime borrower.
You’ll want to choose a company who understands your circumstances
and is willing to work with you to get your credit rating back to
its former glory. Expect to pay a higher interest rate, though, and
possibly more for the car you want to buy.
Step #5: Meet the requirements and file your application.
After finding the dealer you want to work with, fill out the papers
and be prepared to comply with all the requirements. If at all
possible, make a down payment even if it’s not required. A down
payment will bring down the loan amount and show good faith.
Important Reminder: The dealership may require weekly, bi-weekly or
monthly payments. Whenever payment is due, pay on time every time.
This is the most effective way to rebuild your credit.
So there you have it-5 steps to finding the best bad credit auto
dealer in your area and how to work with them to improve your credit
Need to know a ballpark of what you're pre-approved for? Find out now.