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Tips for Buying a Used Vehicle With Bad Credit

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One of the hardest things to do in the auto world is to get a vehicle with bad credit.  The hardest part about it is that no one really ever teaches anyone what to do.  There’s no classes that are required speaking about how to get a used car if you have bad credit.  Luckily, there are websites and resources out there hoping to instruct the consumer in the best possible way to get a vehicle under the worst circumstances.

Cartrade.com has a few steps on how to help those with bad credit still get a used vehicle.

One of the steps is to get the credit score up.  This isn’t a simple magic trick but a longer process.  It is about getting a hold of your own credit score and ridding yourself of the excess baggage that is false reporting.  If you see something on there that doesn’t belong, contact the agencies and inform them it needs to be removed.  Once it is removed, you should see the score increase.

Another step is to make a budget range.  A hard truth in getting a vehicle with bad credit is that you will be needing a larger down payment.  That down payment can have a massive influence on the monthly rate you can get.  So aim for a vehicle that will cost you less and give you more time to improve your credit as you pay if off.

Take a look at their full list and hopefully you’ll find some helpful advice in dealing with shopping for a vehicle even with bad credit.

If you need help with financing, contact us at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the right possible loan to suit your situation.  We love to say yes, you’re approved!  Like us on Facebook and follow us on Twitter to see our monthly news and special offers.

Used Car Down Payments: How Much Should You Put Down?

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A down payment is a strong thing to have when shopping for a vehicle.  For someone with bad credit, it can have a major influence on the deal and the rate offered to them.  The question is for many, however, how much they should prepare to put down when shopping for a vehicle.

Edmunds states that the conventional wisdom for down payments puts the amount at 20 percent.  The problem is that in their evaluation of car payments made in 2013, the average amount was only 12 percent.  Why is the number so much lower than the estimated amount?

One of the issues that a Jack Gillis with Consumer Federation of America is quoted as saying is due to the increase of the cost of a vehicle while the buyer’s income has stayed flat.  Another reason is that the minimal down payments required are much lower.  This would lead people to be putting lower amounts to the down payment as buyers are attempting to spend as little as possible.

Even with this struggle though, Edmunds recommends that the buyer should concentrate on achieving that 20 percent down.  It might be a lot up front, but that can really pay off further down.  Think of it as more of playing the long game.  A vehicle is a large investment and the sooner you can pay off the vehicle, the better your financial life will be.  A larger down payment helps speed that process along.

If you need help with financing, contact us at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the right possible loan to suit your situation.  We love to say yes, you’re approved!  Like us on Facebook and follow us on Twitter to see our monthly news and special offers.

Why a Shorter Loan Term is Better

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A dilemma that comes over any buyer is the idea of how long they should pay off an auto loan.  A longer loan can lead to smaller payments made off a longer time, making it less stressful on a slim budget.  On the flip side, a shorter loan period is harder on a monthly budget, but can free up a great deal of funds in a shorter amount of time by having the car fully paid off.

Edmunds looked at their data and saw that the average car loan term is about 5 and a half years now.  Some are even in excess of 7 years!  The reason many consumers are choosing a deal like this is because of how much money they can afford a month.  Even though a deal like that might be tempting, it is best to try and get a shorter car loan term.

A reason for this is because of interest rates.  Basically, the longer the payment, the more interest being paid.  Even though the monthly payment one is making a month on a shorter term may look cheaper, it is actually more money due to the adding up of the interest rate by the time the loan is finished.  You’d be very surprised to see just how much money that can be.

Another reason why such a longer term is a bad idea is because of the life of the vehicle.  These days, newer cars are seemingly announced every month.  There is a point in a car’s life where a driver wants to get a better deal on a newer car.  Those who opt for the shorter term can find themselves able to get into a newer vehicle while the longer term people are stuck.

If you need help with financing, contact us at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the right possible loan to suit your situation.  We love to say yes, you’re approved!  Like us on Facebook and follow us on Twitter to see our monthly news and special offers.