If you are having trouble financing a car because your bad credit, you may have decided to check out a "bad credit" car lot like AutoStart to see if they will finance and sell you a vehicle. However, you may be uncertain how to proceed. If so, ask the following three questions before purchasing a vehicle at a car lot that finances people with bad credit.
What Information Do They Need to Process the Application?
Before you visit the car lot, call and ask what type of information you need to bring with you so they can process your application. Knowing what to have with you can help decrease the amount of time it takes to fill out the loan application and for them to process it.
Typically, these lots can give you an instant decision if you have everything they need. Examples of information you may need are proof of employment and bank statements. However, you should ask if anything else is required.
Does the Down Payment Amount Decrease the Payment or Interest Rate?
Another question to ask is whether making a higher down payment decreases your car payment or interest rate. Many of these types of car lots have a chart that shows what amounts you will owe based on both the money you put down and the assessment of your application.
As a rule, if you make a large down payment, their risk of having you default on the monthly payments decreases. If this is the case, they may be able to offer you lower rates and payments.
Does the Lot Report Your On-Time Payments?
Especially if you are trying to rebuild your credit, ask whether or not the car lot reports your on-time payments to the credit reporting bureaus. If they do, you could quickly earn positive points towards your credit when you make your payments on time or early.
However, you should also ask if they report late payments even if the lot does not report on-time payments. If this is the case, you will know to make sure your payments are made on time so it does not adversely affect your credit.
Asking the above questions to the lot's dealer before purchasing a vehicle can allow you to know more about the process. If you have any further questions, speak to the sales dealer at the car lot about your bad credit to see how they can help you buy a car, even when no one else will consider you for a loan.Share
17 July 2017
After I totaled my car, I knew that I needed to find a new vehicle that would weather auto body damage a little better. I started looking around for an incredible dealership that I could work with, and I was able to find a nice place that was relatively close to my house. They were easy to work with, focused on making my experience enjoyable, and had an incredibly large selection of great cars. Within a few hours I was able to find a really nice car that I loved, and I was really happy with the entire process. This blog is all about finding a great car that you will love.