Posts tagged "bad_credit,"

low credit score loans

Buying a used car with a low credit score?

Would I have a better chance of getting a loan with a low credit score if I put down a downpayment of $3,000.00 instead of just $1,500.00?

Yes. The more you put down the more seriously the bank will take you. Also, it means you’re asking the bank to loan you less money.

So if you find a car for $11,000 and you put down $3,000 the bank is only loaning you $8,000 – which makes them more willing to do that.

I used to sell cars and here’s a couple tips for you.

1. NEVER tell the dealership how much you’re putting down and NEVER Tell them what you want for payments. Negotiate the final price of the vehicle first, then work out the financing.

2. Look for a car that’s around $10,000 to $11,000 (OTD), is under 5 years of age and under 50,000 miles. Banks want you in something reliable when you’re a first time buyer. If you find a $5,000 car with 100,000 miles they won’t take the loan. Even though it’s cheap.

3. Get pre-approved. This way you will know exactly what you can and cannot afford and can shop for the best car in your price range instead of whatever the dealership happens to have on hand.

If you want information on car buying and pre-approval here’s a good website

http://www.1-800badcredit.com

Look on their blog pages for articles on car negotiating too. But there’s a page for first time car buyers and information on lenders that can pre-approve you.

Bottom line – do your homework before going out so you don’t get suckered by a salesman!

Good luck to you!