Insider Tips To Buy a Car With Bad Credit

Here’s an insider secret on how to buy a car with bad credit. It really is easier than you think.

Most people with troubled credit walk into a dealership, pick out a car and fill out a credit application that is then given to the finance manager. The finance manager reviews the credit bureau report and estimates the interest rate and amount of loan that you are likely to get approved for. Once the salesman or sales manager has a commitment from you that you will buy the car if the finances are approved, the finance manager then starts the submission process.

Typically, the finance manager will submit your information and information about the car you are intending to buy to several finance companies that are contracted with the dealership. These finance companies know that the dealer is out to make as much money as they possibly can on the sale and will restrict the dealer by only approving a certain amount and interest rate for the sale.

This is where most people go wrong. They rely on the car dealership to handle their financing. It is much, much better if you deal with the finance company directly. Did you know that car dealers mark up interest rates just like they mark up the price on a car? That’s right. If you’re approved for 10% interest by the finance company, the dealer may ask you to sign a contract at 15%. The 5% difference is nothing more than profit for the dealership and you end up paying thousands more than you should have to.

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