Tips on How to Buy A Car Without Perfect Credit
Your credit history and score are vital in the car buying process and if you do not have good credit, it may hinder your next car purchase. This brief read will give you important tips on how to do just that.
Credit Rating: Know exactly how your credit rating is doing. To have a clear picture of your credit standing, get an annual report through your credit bureau. Typically, the lower your credit rating is, the higher your interest rate will be. You can also keep tabs on your credit score by using apps like Credit Karma and more, however keep in mind that the credit pulls this app does, are different to the way a car dealership pulls your credit.
Bad Credit Items: Don’t add any bad credit items to your history. Before you go car shopping, it’s important to avoid adding any bad credit items. This will only worsen your chances of getting approved for your next vehicle.
Keep Things as They Are: It is also a good idea not to open a variety of new accounts on your credit report as this will lower your score even more. Keep your debts as they are and do not let your score change much during your car buying process.
Interest Rates: Check the current interest rates for an auto loan if needed. If you do your homework before you buy a car, you will not run into any unforeseen circumstances. If the interest rate presented to you is more than double the average, skip the offer and look for another.
Down Payment: Since cash is king in any transaction, try to hand over a bigger down payment. If you want to lower the interest rate offered, paying a larger down payment is what you should aim for. If you want to save in the long run, getting a shorter loan period is also recommended.
Finance Team: Work closely with the car dealership’s finance department as they are the team that will give you the loan in the end. Be as open as you can and show them all the necessary documents and they will work with you to ensure that you get approved for what you can afford.
There are many factors in all car loans and car purchases, and it is vital that you keep up with all the necessary requirements. If you are uncertain or require assistance, come and visit our finance team and let them sit down with you and discuss your options. Just because you may not have perfect credit, does not mean you can’t afford a car from Atlanta Luxury Motors.