You have bad credit and you need a car. You would be surprised at how common this situation is. So what is it you need to do in order to get that auto loan?
First off is knowing your credit score. This is the important number that will help you truly understand what you will be up against. It’ll also answer the question if you truly have bad credit. For all you know, the idea of you having bad credit may just be a misbelief. Your number may not be as low as you think. This is why it is important to know your credit score.
Once you have that score, know where you fall on the credit risk scale. Edmunds.com shows that if your score is between 601 and 660, that puts you in the Nonprime category. If your score is between 501 and 600, that is subprime and anything below 500 is deep subprime. Again, you would be surprised by how many people borrow at the subprime and deep subprime level. Edmunds estimates that this is 32 percent of used car loans and 10 percent of new-car loans.
Now that you know where you are located in your credit score, now is the time to plan. Put together your budget and know what you can afford monthly. The lower on the subprime scale you find yourself, the more you’re likely to pay over a longer period. If that is the case, then it is also time to start thinking about a downpayment. That can help you get a loan when you’re in the subprime category.
Did you know that when new car sales go up, prices on used cars go down? It’s true! In 2014, new car sales were up, and there were more affordable used cars for all price ranges. The reason is that most people purchasing new cars were trading in their last cars to put towards a down payment, and as a result, there is a better variety of cars available for smart shoppers.
The good news is that new car sales are continuing to hold strong so far in 2015. According to CNN Money, car sales are the best they have been in almost a decade, and it is showing no signs of slowing down. This means that more used cars will be hitting the market soon, and with low, low gas prices, owning a car is cheaper than it has ever been.
At Bayside Chrysler Jeep Dodge, we want to help you make your dream of owning a great car a reality, and we will work with you to find the right car to fit your needs. You can get pre-approval, check out our monthly specials, and shop our online inventory by make, model, and year. Click here to visit our website today, or stop by and visit us in person at 21219 Northern Blvd in Bayside, NY. You can also get our latest deals and news by following Bayside on Twitter and Facebook and subscribing to our YouTube channel!
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Car shopping with bad credit can be a taxing endeavor. The worst is that no one is ever really brought up with the idea of what to do when it comes to shopping for a car. The best way to approach getting ready to getting an auto loan is the same as with any other major purchase, doing early leg work.
The best way to start is to begin months in advance. The process is a lengthy one, not one that someone should expect to have finished in the weekend they start. Begin with looking into your credit report. Knowing what your credit score is is what will give you an advantage with dealing with auto loans.
Knowing what your credit score will let you know what credit tier you fall into to. Anything less than a 619 score is considered subprime.
Another thing to make note of in the credit report is the risk factors. Risk factors are described as anything from an old debt that went to a collection agency.
Edmunds views risk factors not as inherently negative or a road block to getting an auto loan. If you take the steps in fixing these issues, it can be seen a positive in the fact that you are taking steps to improve your 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.