Many times you find yourself helpless in case you have a bad credit especially if you're buying a car
. If you have plans to buy a car with bad credit, there is need for you to know few things.
There are primarily two reasons why a dealer needs a down payment. The most common reason is that he wants to add profit to the sale. Another reason is that he needs to lower down the total amount financed for approval by the money lender. The demand for a down payment varies from dealer to dealer and it is almost difficult to explain this reason as you are mainly dependent on the dealer to get you car load credit approved.
Most of the people believe that it is difficult to get the car loan with credit from the local bank. In such case, you car loan would get approved from the car dealer. This is a common mistake that can result into spending a huge sum of money unnecessarily.
Generally car dealers mark up the price of the car. It is well known but did you know that they also mark up the interest rate. They submit your credit application to lenders. Since you have a bad credit and you will get convinced at a higher interest rate.
Now the truth is that you can get the car loan with bad credit even with no down payment and also with lower interest rates by simply avoiding the dealer finance department altogether. If you know where to look and prearrange your financing, then only you can buy your dream car through the dealer. The simple way is to pick the car of your choice based on the amount the finance firm preapproved for you and had the dealer an inspection. It also helps in doing negotiation on the price of the car.
Horseshoe Financial, a company that specialized in getting you approved for a car loan credit regardless of your past credit history.