Bad Credit Car Loan - Bad Credit new Car Loan - Auto LoanAre you trying to figure out how to get a car to replace the clunker auto that died ?
It can be like a catch 22 when you have a job but can't get there to earn a living.
Borrowers with bad credit have to make a larger down payment. They will also get nailed with a higher interest rate.
If your credit is totally horrendous you may not be able to get a loan, or you might have to come up with more than 50% for a down payment.
A lot of time the people with bad credit can get a loan with a large down payment in the area of 8% - 19% and must pay it off in a shorter time usually in less than 5 years.
The payment can be quite high, but if you can handle the nut you can improve your credit quite a bit. Sometimes car and truck dealers who deal with the banks take on some of the burden of the loan.
There are some real scams out there where dealers know that customers are desperate.
The salesman will sell a car worth $5,000 for $9,000 and grab a big down payment with a high interest rate. In the end, the customer ends up paying 4 or 5 times what the car is worth in 3 years.
Use the Kelly Blue book to find out what a car is worth and figure a $200.00 - $500.00 profit for the car sales company depending on the market value of the car.
That cuts down on the bulls**t from the salesman.
That will put you back in the drivers seat as far as negotiating.
Remember, you want a car, and they want to sell a car. If you walk away, they get no profit.