Getting a car if you have money and good credit score is one thing, but buying one if you’re broke or in debt is quite another. Still, even if your financial status is currently on the rocks, that doesn’t mean you can’t get a brand new or used car. By following the tips laid out below, you can do just that!
Get a Loan Through the Dealership
Seeking a loan though dealerships is quite common. In fact, a lot of auto dealerships specialize in selling affordable used cars to customers with slightly critical financial status. Most refer to them as “buy here pay here" programs. Basically, the dealer gives you a car loan to help you buy a vehicle with little to no money down. Afterwards, you need to settle your debt with the dealer an interest rate they will set. Before applying for this type of loan, you should know the good chance your application would be approved.
Keep Your Employment Status Steady
You can also increase your chances of buying a car is by improving your current financial standing first. And the best way you can do this is by having a stable employment with a steady income. Many lenders and dealers look at an applicant’s employment status and pay slip when deciding to approve their loan. Most base their decisions on the person’s ability to settle their loans as soon as possible. So if you want to buy a new car and you’re currently unemployed, best get a job first.
Optimize Your Credit Score
Another way you can improve your current financial standing is by optimizing your credit score. Stat by learning what your credit score first to help you know where you stand financially. Then proceed with evaluating your score to know if you can still qualify for a car loan or not, as well as determine the amount of money you can get from the loan. While you’re at it, you should make sure there are no discrepancies in your credit report (notify the authorities immediately in case there are). And you can also do a few things to gradually improve your financial standing, including paying off small balances and getting a credit card.
Improve Your Financial Status First
By following the tips above, you’ll be able to buy your own car despite having little money and a previous undesirable credit score. Still, it would be better if you improve your financial standing first. That way, you can better enjoy your ride.
If you’re ready to purchase a second hand car now, then let’s #GoDrive!