Buying a car with a bad credit requires a little patience and keen spirit
. Why? It is never easy to get approved car finance even for 2nd hand cars due to bad credit history. Moreover, car dealers and car finance companies do not approve applicants without further investigation on the applicants credit ranking. With that in mind, what do we need to avoid when buying a car with a bad credit? Below are just a few reminders on the things that we need to take into consideration.
Never expect to own the car when you havent even signed a contract yet. Some car sales agents are trained in such a way that they provide huge revenue to their company. You only own the car once every paper is settled.
Dont even rush to request for the car keys and drive the car immediately. There are certain strategies that allow you to drive away the vehicle and then simply notify you that the contract is not yet final. They will ask you to pay more down payments or a higher interest rate. This technique among car dealers is a long time practice. Remember; dont drive the car unless the contract is complete.
In relation to the above mentioned tips, look for a legal binding agreement between you and the credit car finance company. Be careful of fine prints. If the paper that you signed has this quote "subject to final approval", return the paper and walk away.
Learn about the current market price of the 2nd hand car that you are planning to buy. Check the pricing terms of the agreement.
What ever happens, even if you truly need to have a car, dont sound like you are too desperate to have one because they will put a higher interest rate on the deal. Act like its not really a necessity.
Lastly, even though there are some companies who do dirty tricks just to get more sales, there are still some Michigan car finance institutions who are willing to help those who are in need to have a car no matter what our credit standing is.