Ways to Save Money on Bad Credit Car Loans

Bad credit can add stress to buying a car. You know that getting a loan will be more difficult from the start. You also know to expect higher interest rates. As unpleasant as those facts are, you aren't out of luck. The bad credit market is too large to ignore, so dealers have to be prepared to cater to your needs just as much as someone with a perfect credit score. Here are a few things to remember that will help you save money on bad credit car loans.

Let the Dealer Help

Ultimately, the person selling you a car is a customer service agent. Make sure they partner with you, so the two of you become a team working towards the same goal. If you are both up front about your credit levels from the start, it will be easier for them to give you honest estimates. If you set a budget, they will strive to meet it. Their goal is to sell you a car. If you make them focus on what you need from the start, you can avoid wasting time on loans that are sure to fall through.

Be Flexible

A bad credit score will make you ineligible for the lowest possible interest rates. That doesn't necessarily mean your interest rates will be astronomical, but as you can expect to be paying more than zero percent APR, managing final interest costs is your biggest goal. With higher interest loans, even saving a hundred dollars off the initial cost of the car can save you several hundred in the long run. This is where flexibility is key. Being flexible in your make and model choice will empower a dealer to help you find a vehicle that fits your budget. Cutting extras that you don't need, like satellite radio subscriptions, will go a long way in minimizing your total interest costs. The less the loan totals, the less money you will have to pay in interest.

Keep your options open and you can come out ahead when you apply for bad credit car loans. Don't let stress or fear keep you from getting the vehicle you need.

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