Getting a fair price for a used car with bad credit

Getting a fair price on a used car is a good goal, regardless of your credit score. It’s especially important for borrowers with bad credit to know how to get the lowest possible price, because bad credit usually raises the price of financing.

Find your best deal

The auto market is gonzo right now. New and used inventory is at an all-time low and new inventory is slow to arrive. If you are a bad borrower need a new car, now might be the time to buy, and we’ve got some tips to help you get the lowest loan cost you can afford.

1. Research your car and inventory

With the auto market seeming a little empty these days, it’s a good idea to research the vehicle you’re considering buying. Models that have been in high demand may be harder to find, so you may need to work with a dealer to locate the make or model you want.

Remember that buying used usually means buy as is. This means that there is no recourse if something goes wrong right away. For this reason, it’s a good idea to review the make and model you’re considering to make sure they hold their value and get good reviews from current and former consumers. The more popular models are also likely to have a higher price. If there’s a vehicle that meets your needs but isn’t in demand for some reason, it doesn’t hurt to keep it in the running for a test drive. You can love the car and save money too.

2. Fare Shop

If you find a vehicle you want and have the option of getting it from several different places, it’s a good idea to apply to at least two or three of them to see which lender you want. offers the best deal. This is known as shopping fare.

When you review a store, you apply for the same type of loan from multiple lenders in a short period of time – usually around 14 days. The credit bureaus can see that you are looking for the right deal, therefore. all inquiries appear on your credit report, but only one has a temporary impact on your credit score. This allows you to lose fewer points when looking for a fair price on a used car and a good loan to go with it.

3. Know what to negotiate

car loans and car prices are not unique, and they’re not set in stone in most cases (although some resellers offer “no haggle” prices that aren’t open to negotiation). Several things can usually be negotiated in the buying process, so make sure you know where you stand before you start trying to stare down a dealer.

You can also negotiate loan terms with an auto lender. Know what your credit score is and what the average interest rate is for someone in a similar situation – that way you have a leg to stand on.

Know that you can usually negotiate with a dealer: the selling price of your vehicle, the amount of your down payment, dealer surcharges and dealer literature fees. The things that cannot be changed are your taxes, titles and license fees. Be prepared to fight for a fair price and know that you can always opt out of an offer that doesn’t meet your needs.

4. Bring a trade

If you have a car you need, this could be the key to a fair price on your next used car. Have a vehicle for reprise can lower the price of your next car if there is equity. This means you owe less for the car than it is worth. Right now, used cars are in demand, so you might get an even better price for your trade-in, depending on its condition.

ACE Tip: Negotiate your used car contract first. Getting the dealer to accept the lowest price before telling them you have a vehicle to trade in can work to your advantage and go a long way in helping you get a good price.

Ready to find your own offer?

If you have bad credit and are ready to fight for a fair deal, we’ve got you covered. Here has Auto Express Credit, we’ve been connecting borrowers in credit difficulty with the dealers who can help them for over two decades, and we want to help you too. Our dealer network is registered with subprime lenders who know how to help you even if you are in bad or no credit.

To start, all you need to do is complete our quick, no-obligation car loan application form.

Comments are closed.