How to Buy a Used Car with Bad Credit and No Down Payment

How to Buy a Used Car with Bad Credit and No Down Payment – Having bad credit score surely affects your change to get new car from dealer. Bad credit happens for some reasons and you have to pay attention to these matter. Most financial institution and bank still use traditional method to assess credit. Low score means high risk to lend money for creditor and vice versa.  Another thing you should aware is the down payment before purchasing car. Down payment is needed when you buy on dealer in no cash transaction. However, you can try to avoid such payment to reduce cost at front when buying used car. In this article, you will get tips about purchasing car with no down payment and bad credit score.

The Steps

First thing you have to do is to check and review current credit status. Ask more than one institution to send your credit report. It is important to see which part that still has possibility to change. If you find different number in two reports in same section, try to verify and confirm. Bank or dealer will do the same thing to client with credit score issue. You will be asked about report when applying it for loan. Preparing answer by reviewing thoroughly on your report will make a better chance to get loan.

Report will tell that you cannot afford to buy used car which the price is above certain level. Having seen report, you have to realize about financial condition. Used cars on market are available in several price ranges. For high-end and limited car like 2005 Ford Thunderbird, the price of course is high. It would be wise to put aside any desire to acquire that kind of car. Unless your financial projection will be better for next month, buying that car is no problem at all. Therefore, making calculation is better than wrongly taking step in order to avoid unwanted risk happen in the future.

How to Buy a Used Car with Bad Credit and No Down Payment
How to Buy a Used Car with Bad Credit and No Down Payment

The next step is to look for financial institution and dealer that provide no down payment. In fierce competition market, dealer offers many interesting packages to attract more customers. One of them is allowing people in bad credit score and strip off down payment for buying used car. Based on experience buyer, this situation will be found easily when market is in low stage. No significant growth in car sales related to extensive marketing campaign. Another way is by waiting for end year when discount and interesting offer are available.

The next step is about negotiation for price and rate. If you buy from the same dealer and lender, the process might be a little bit easy and simple. Having bad credit does not reduce opportunity to get low rate for loan. You are able to negotiate this matter to suit interest below financial condition. Try to reach as low as possible to match your financial calculation. Negotiating the price is a little bit tricky, especially for inexperienced buyer. You need to obtain proper information about used car. Purchasing old car such as 1997 BMW 328i requires comprehensive checking on the car condition.

You will fill many paperwork as consequence of bad credit and no down payment. It is part of legal process for dealer and lender to make sure that client has low risk. For this reason, you have to prepare many things from beginning. Failed to fill certain paperwork will decrease probability for buying used car through loan. Do not underestimate paperwork or legal matter when you want to buy a car, particularly used one.

The last thing is finding your car in marketplace. Try online site like Craigslist that provide many used cars and dealer information. You can find eligible seller from nearest city and location. When you like certain car, start to prepare for purchasing process.

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