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March 16, 2006
Ask the Salesman: How Can I Buy a Car With Bad Credit?
If you have questionable credit or you know you have what some would consider bad credit, you are not necessarily forced to go to a "Buy Here Pay Here" type of dealership.
When I say dealership I am referring to those that do not advertise "Bankruptcy, Repo, Divorce, No Problem!" Those are for the most part honest dealerships but as a rule the cars that are sold there are bought from auctions. They got to auction because they are what most dealerships did not want to sell for one reason or another.
If you are one of the people that thinks they have substandard credit, do not feel like you cannot buy a car from a reliable new car dealership. If you are not 100% sure of your credit situation, the first thing to do is to put your cards on the table when going in. Tell the salesman upfront and ask to have them run your credit. It might be a situation of what can they get you approved for or that you actually have better than average credit.
If you are in a situation where you actually are credit challenged, let the finance manager work for you to get you in that car. You need to have some options if you do not want to be taken advantage of.
Rest assured, those with bad credit are the easiest to do that to. Ask them what you can get approved for. You may have your heart set on a silver V6 Accord but, the dealership may have a blue 4 cylinder Accord with some rebates that can be used as money down or the dealership may be willing to take a loss on a car to get it out of inventory. You also may be do better with a 1 or 2 year old used vehicle.
Most banks go by NADA retail value when deciding what dollar amount to loan on a car purchase. The dealership may have a 1 year old car that they have very little money in and with a high NADA value. If it is the end of the month they may be very motivated to make a deal on it. You need to keep your options open. You never know, a lending institution may be buying more deals this month and will let questionable things slide on a credit report.
Most importantly of all, take your time. Rome was not built overnight and if you have bad credit, you will not get approved in 15 minutes.
Publisher's note: "Ask the Salesman," is a weekly feature where Dave Lewis, a working auto sales professional, shares his ideas and suggestions for vehicle buyers. Dave has been in the automotive profession for seven years and currently sells BMWs at The BMW Store in Cincinnati, Ohio. You can find his website at www.BMWlivery.com.
Posted by Frank at March 16, 2006 4:24 PM | Filed under 2006 Vehicles
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