If you’re looking to buy a car in Centennial, Denver, or Aurora, bad credit can be an obstacle. While bad credit won’t necessarily stop you from buying a car, it can make it more difficult and make it cost more in the long run.
So, how do you finance a used car with bad credit? Check out our tips for buying a used car with poor credit and find out where to go to get the best rate on your purchase.
Check Your Credit
Before you worry about getting an auto loan with bad credit, find out if your credit score is actually low. Just because you’ve missed a few payments or have a lot of debt doesn’t necessarily mean that your credit is bad, so check your credit and use those scores to decide your next steps.
Improve Your Score
Once you’ve checked your credit score, look for areas you can improve before you head to the dealership. While some aspects of your credit score can’t be fixed quickly, errors on your report, old collection accounts, and other factors can be corrected to gain some points and get you a better auto loan rate when you decide to buy.
For those with truly bad credit, a pre-approval on a car loan from a bank or credit union could help with the car-buying process. A pre-approval evaluates your expenses, credit score, and income to determine what a lender would be willing to lend, giving you leverage to get a better rate.
Find a Dealership
If you find that your credit isn’t great, you can still get a great rate with the right dealership. Dealerships work with a network of lenders and can often provide you with competitive rates and different solutions for your auto loan. Before you shop, find a dealership that has the relationships necessary to give loan choices.
Save on Your Loan
Once you get your loan, there are a few ways to save more money and ensure you don’t get yourself further in debt with your financing:
- Choose a short-term loan to save on interest
- Purchase a late-model used car, since used cars can sometimes have higher rates
- Avoid expensive options and add-ons
- Compare rates for your loan
- Make extra payments whenever possible to save on interest
By choosing a less flashy vehicle and saving wherever you can, you’ll get your credit in a better place for the next time you go car shopping.
How Do I Finance a Used Car with Bad Credit?
If you’re shopping for a vehicle with bad credit, don’t be discouraged. At Mile High Honda, we have an extensive network of lenders who are ready to help you get an excellent rate on your auto loan. We also have a wide selection of new and used vehicles to suit every need and budget, so you can find your perfect match.
Drivers in Centennial, Denver, and Aurora can visit our dealership to browse our inventory and learn more about our financing options. Call or stop by today for a test drive!