Finance a Car With Low Down Payment

Happy smiling woman with car key. Driving

Sometimes life happens. When you’ve got a family and a job you need a car to do everyday family things like pick your kids up from school, go grocery shopping and pay bills. Every once in a while your car will break down and you’ll need one to keep things going. What do you do when that happens and you don’t have much money? Don’t worry! You can still buy a car, truck or SUV for a low down payment and no credit check. All you need to do is know where to look.

1. Research: Don’t wait for the last minute to start looking around. This will add more stress than needed and may force you into a pre-owned or used car that you just don’t want. Know which cars are the most reliable that will save you the most money. Look for low maintenance brands that are tough. The cars that are well made like Honda, Chevy and Ford trucks or a Toyota. These cars are all easy to fix and won’t break down on you as often as other brands. You don’t need to write a 10 page paper on what car you should buy and why. It doesn’t hurt to ask around and read about this stuff just in case something breaks down.

2. Call around: Everywhere you look there is a car dealer or dealership just around the corner. While they all look the same from the outside if you venture into a few you’ll realize they’re all different. Each one may specialize in something completely different than the other, sell different types of cars, only focus on trucks or SUVs, or only finance through a bank or credit union. Because they’re all different it is always better to call around and find out which ones will work with you. We don’t have much time especially if you have a family. Not many people like to waste their Saturday at a car dealership or multiple dealerships only to get turned away. So call around and ask questions.

3. What questions should you ask? If you’ve only got $99-$300 for a down payment and bad or no credit you don’t have many options. There are some very specific questions to ask.

A. What’s the lowest down payment that you will take? Some dealerships will deliver a car for a low down payment and give you up to 45 days to complete the rest. These car lots are much more understanding of various life situations that could arise such as your car breaking down at the worst time possible.

B. When is my first payment due? There are some car lots that will defer your payment for up to 60 days! This will give you time to save up money to get back onto your feet so you can comfortably pay your first payment.

C. How long does it take to get financed? There are some dealerships that will grind you all day. There are others who are understanding of your life situation and will get you in and out in under 2 hours!

4. Buy here pay here or special finance? Make sure you understand the difference between these two terms. Special finance is usually associated with bigger dealerships with newer models. You still need specific criteria to qualify and they often times won’t work with you if you have a previous repossession. Buy here pay here is much more flexible and understanding. They work with all types of credit issues and even work with previous repossessions.

5. Stability not credit score: Find the place that works with stability and not your credit score. People are more than just a number. Credit score doesn’t tell the whole story. All it tells you is what you’ve done in the past. If you are working on fixing your credit and making changes than it won’t reflect in your credit score. If you’ve got a good paying job and just learned about budgeting that won’t show up either. Find a dealership that goes by stability and not credit score to determine whether or not you will qualify.

6. Credit reporting: Bad credit can be a tough thing to deal with. While financing a car you should start thinking about how to rebuild your credit score. The best way to rebuild your credit score is to take out a loan and pay it off in time. While not all buy here pay here dealers report there are a few who do. Find the ones that report and only buy from them. It shows that they also care about the credibility of their customers. They are not only there to sell you a car but also to help you get back on your feet.

When you have a low down payment it can be hard to get financed. While it is hard it isn’t impossible. You just need to know where to look and who to deal with. If you keep these questions in mind then it will be much easier to finance a car with bad credit and little to no down payment available.

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