Transportation is a necessity, but having a low FICO score can make buying a car a hassle. Credit is what most dealerships focus on when offering car loans and applicants deemed high risk are less likely to be approved for a loan. Fortunately for those without perfect credit, there are ways to qualify for a car purchase without waiting years to rebuild a good credit score.
One of the many ways to buy a car with bad credit is to go to a ‘buy here pay here’ car lot. Many car lots extend credit to those who may have poor credit, but have a good job history or a decent income. If your income can support the purchase of a car without putting a major strain on your financial situation, visit a ‘buy here pay here’ lot to see if there are any options for you.
Another thing that many car buyers do not think about is buying a car from a private seller. Some private sellers may accept payments from the buyer, rather than asking for complete payment up front. Private sellers have more flexibility than banks, so if you are low income or do not have good credit, a private seller will be easier to work with. If you do decide to finance a car with a private seller, it is important to draw up a contract so that each person’s stake in the vehicle is protected.
Buying a car without good credit may seem impossible at first, however with a little research; there are ways around qualifying for the traditional auto loan.