Bad credit doesn’t have to mean not buying a car. Your financial history doesn’t have to dictate your financial present or future. There are a couple of different options available for people with bad credit to get a car. Here are some tips for finding the financing option that fits your needs.
Buy Here Pay Here
The first option is “buy here, pay here” dealerships. These are dealerships that give you a loan and require you to come to the dealership and make payments in person. They do this because your credit history makes you a risk for defaulting on your loan. If you’ve been making payments late or otherwise violating your loan, you have to show up in person still. They figure that since people drive their cars to the dealership to make payments, the car is that much easier to repossess if necessary.
Dealer Bad Credit Loans
There are San Antonio TX used cars for bad credit dealers who give loans directly to their customers without requiring them to pay in person. With these loans, you have to have a steady income, and the interest rate is higher than with most loans. The benefit of getting a loan directly from the dealer is that they can specify it to your budget and needs. They know you have bad credit, and they are taking the risk other financial institutions aren’t to finance you.
Make sure you find a reliable dealer for this option. If they close before your loan is paid, it’s sold to a faceless corporate collector. Corporate collectors are much less fun to deal with than your friendly dealer.
Financial Institution Loan
Some financial institutions also offer bad credit car loans. These are similar to loans offered by the dealer. However, they can be much harder to find, so they need some work put in to get.
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