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When am I ready to buy a new car?
Buy Here Pay Here / Used car dealership

icon/user/avatar/20 Created with Sketch. By Mark Castaneda

Most people think that if their credit is bad then they cannot buy a car. This might be true for certain dealerships but here at Texas Auto Sales, we help people with bad credit buy the cars of their dreams. Here’s some tips for buying and financing auto loans when you have bad credit.

Do your research

Before you purchase your dream car, do your research on pricing, budgeting and your monthly expenses. Looking through your expenses and seeing how this car payment will fit in, will help make your mind up tremendously. The difference between a monthly payment of $500 and $200 doesn’t always see like much but it can make a difference. Being 100% sure that you will be able to make your monthly payment will be the first thing you need to figure out before the purchasing process. Make sure you understand the auto loan rates and terms work before signing anything. APRs and loan terms can sometimes not be very straightforward, so that is why you need to fully understand them before purchasing a vehicle.

APRs are the interest rates that you will be charged for borrowing a sum of money in order to buy your vehicle off a lot. Interest fees may vary depending upon multiple factors, such as your market conditions, special offers, credit history and a few other deciding factors.

Loan Terms are the amount of time it will take you to pay off the borrowed money you used to buy your vehicle. You can have a longer lean term and pay less per month or you can have a shorter loan term and pay more monthly fees. We usually recommend having a longer loan term for people with bad credit.

Money Down or Trading in Vehicles

When dealing with bad credit and trying to buy a car, it might be a good idea to put a good down payment on the vehicle you’re purchasing. The down payment will help you out in the long run since you won’t have as much money to pay back or finance. The same thing goes with trading in a vehicle. When you trade in a vehicle, it is basically like putting a down payment. Let’s say the amount that the car you’re trading in is worth $10,000 and the car you are purchasing is $20,000, then that only leaves you with a balance of $10,000 to pay back. This will lower the time it will take to pay back as well.

Overall, doing your research on what dealership to go to, what car you want to purchase, seeing what your budget is and how much of a down payment you can put on the vehicle will determine how your purchase goes. Having bad credit doesn’t mean you can’t buy a car, it just means you must do a little more research then the average person. At the end of the day, you will end up with a good deal if you follow these tips listed.

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