If you have bad credit and have ever tried to walk into a dealership to buy a car, you might have found that it was next to impossible to get approved for a loan. This could have left you thinking that you will never be able to own a nice car again -- or at least until you're able to repair your credit, which could take years -- but this is not necessarily the case at all. In fact, you have a few different options. These are four of your main options for buying a car when you have bad credit.
1. Pay Cash
The first and most obvious option is to pay cash for a car rather than trying to secure financing. This can be difficult to do if you are looking at more expensive cars, but in some cases, you can find used cars that are relatively affordable. With this option, not only do you not have to worry about getting approved for a loan, but you also do not have to worry about a monthly car payment. However, you might be limited in regards to the car that you can purchase if you have to save up cash for it.
2. Work With a Bad Credit-Friendly Lender
Did you know that there are some lenders out there that actually work specifically with people who have bad credit? You might be required to pay a higher interest rate, but working with one of these companies can help you get a car even with a low credit score. Plus, in many cases, this can help you rebuild your credit as well as long as you make your payments on time each month.
3. Choose Dealership Financing
Some dealerships actually offer their own in-house financing. Even though they might have some restrictions, many are not strict about credit scores at all. With this type of financing, you'll make your monthly (or sometimes weekly or bi-weekly) car payment to the dealership rather than to a bank or lending institution.
4. Have Someone Co-Sign
If you know someone who has good credit and who is willing to help you out, you can ask that person to co-sign with you on a vehicle loan. In many cases, this can help you get approved for a loan that you would not otherwise be approved for. It's important to note, however, that if you don't pay your payments on time, this could affect the other person's credit as well as yours.
As you can see, even though it might seem like you can't buy a car with bad credit, this is not the case at all. If you explore these four options, you might find that getting a car is a whole lot easier than you thought it would be at a place like AutoStart.