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Bad car credit tips for you!

Get an auto loan in Chicago today!

1. Visit a Dealership that specializes in bad credit auto financing

The most important thing you can do is to find a dealership who understands how to work with customers who have bad credit.  It will save you time, you’ll get a better car, and you’ll probably get a lower payment as they understand what it takes to help customers get an auto loan with bad credit. They also stock their lots with cars and SUVs that lenders will approve you on if you have bad credit. Car Loans on Demand can help you locate a franchise dealer in your area.

2. Down payment

Money talks.  It’ that simple.  You’ll get the car dealer’s attention and the lender’s attention when you come with at least 15% down or $1500.00 depending on the cost of the vehicle you are trying to buy. You’ll also leave with a lower payment which is very important when trying to rebuild your bad credit with an auto loan.  Best type of down payment-cash.

3. Be flexible on the type of vehicle

Too many shoppers with bad auto credit have unrealistic goals when it comes to buying a car. They hear stories of friends who bought Escalades and Navigators and other fast depreciating, expensive to maintain vehicles, only to have the  final chapters of these stories left out by the owners-the part about them being repossessed.  You need to understand that banks and lenders want to see people with bad credit in low mile, dependable vehicles that don’t depreciate and have good warranties (see our list of the 10 best vehicles to buy with bad credit).  You don’t have to take junk, but you should realize that this car may be one that you “just date, not marry”.  Once your credit is on solid ground then start considering that Mercedes Benz you’ve been dreaming about!

4. Have a co signer

Most people who have an aversion to this don’t realize how much much help this can really be.  If you have someone who is willing to help ASK THEM.  It could save you thousands of dollars in the long run.  Consider this-even with bad credit, you will want to get into a different vehicle every 2 or 3 years.  If that is the case, when you trade your vehicle in, if you have made your payments on time, chances are good you won’t need the co signer for your next car. But think of how much money you will save…  And think how much better it will look on your credit report if you you were financed at a better bank with a strong reputation and strong name with a co signer than on your own at a known bad credit finance company.  Your next loan may be even easier to get now.

5. Come prepared to the dealership to do business

A dealership that specializes in bad credit auto loans in Chicago will ask you to bring certain documents known as stipulations or “stips”- these are for the lender not the dealer.  They are requirements in order for you to get a loan so you need to follow their instructions.  It will make the deal move more quickly and the dealership is more likely to work harder on your deal than someone elses.

6. Sure price is important, but payment is everything

Work with the dealer and the sales department on payment more than price.  They often times have high fees they have to pay to the lenders to get your deal financed and they are in the business of making money for their efforts.  If they don’t make some sort of profit you won’t have a car.  We’re not saying because you have bad credit you should get ripped off, but the reality is a bank won’t let that happen most of the time anyway.  After all, it’s in their best interest that you pay for the car…they’re the ones really on the hook for the money. Let Car Loans on Demand help you achieve your goal of getting into a vehicle today!

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