How Can I Buy a Car with Bad Credit?

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How can I buy a car with bad credit

How can I buy a car with bad credit is a problem many people face. Buying a car with bad credit is not a good a good idea. People that have bad credit and then go buy a car typically pay anywhere from 18% to 23% in interest! When you calculate the interest cost over a 5-year auto loan, you’re probably paying twice the cost of the vehicle! That’s CRAZY!

According to Consumer Affairs

In general, it is better to go with a bank or an auto financing lender rather than the car dealership down the street that is offering a “buy here, pay here” deal. If you do wind up with a high interest rate on your car, work on rebuilding your credit score so that you can eventually refinance

So what if you find yourself in need of a car and have bad credit?

If you suddenly find yourself without a car you might be asking, “How can I buy a car with bad credit?”, well, You DON’T!  I know not having a ride can be a problem, like how do you get to work, or what if you want to go out?  Well as far as getting to work goes, see if a work colleague lives near you and chip in on some gas for a ride. As far as getting out from time to time, there’s always Uber.

You want to give yourself a few months to save up some money. This way you can pay cash for a vehicle until you can get your credit to a point where you can get a 6% or less interest rate. Your selection of vehicle and the total cost for the vehicle will be a lot less.  Here is an example based on $35,000.00 vehicle purchase at 6% versus 20% on a 5-year loan.

How can I buy a car with bad credit


As you can see your paying about $15,000.00 less at 6% interest rate. And your monthly payment is approximately $250.00 less per month!

OK let’s play a little game. What if you took that $250.00 per month that you’re NOT paying in interest and invested it each month over the same 5-year time period?


In this scenario you end up EARNING $3000.00 instead of PAYING $15000.00. I’d say that’s a pretty good argument for doing everything you can to avoid a high interest car loan.

Instead, put ALL the resources into getting your credit fixed. This will help position you to buy at a good interest rate with minimum money down.  This will save you a ton of money and you won’t regret it!

If you are considering purchasing a car in the near future and have some credit challenges, be sure to check with one of our credit expert to see how you can improve your credit.

Click here to connect with one of our credit experts:

How to Buy a Car with Bad Credit

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