Buying a Car with Bad Credit from Dealerships
Many customers who are trying to purchase a vehicle are finding that the bad credit car dealerships Columbia SC have to offer are among the most popular in the nation. This is thought to be true because there is a significant lack of financing options for people that do not know how to find bad credit dealers in South Carolina. This is especially true when trying to secure a bad credit or no credit auto loan from a local or national bank when trying to buy a car from a private party auto dealer. Even with the guidance of a loan officer, many people end up applying for a personal loan, rather than a bad credit auto loan, when trying to buy a new or used vehicle. This is because a personal loan doesn’t require as much legwork. To apply for a personal loan, you don’t have to know the exact vehicle you are going to buy.
A personal loan sounds like a really good idea, it will allow you to get cash, and then find the car you want to drive that is within your new budget. However, if you have bad credit ratings, the banks are going to be much more reluctant to extend a bad credit car loan in fear of the loan becoming a default. If the loan defaults, there is no lien on the vehicle; there is no protection on the banks end that they may be able to salvage part of their loss if the loan does end up defaulting.
When you purchase a vehicle from a from a Columbia, SC buy here pay here auto dealer the credit application and bad credit financing process is much more streamlined. The banks are more comfortable, they know what car you are getting, and their name is attached to the car, so you both own it together until you pay off the loan. If something happens to the vehicle, many vehicles have a warranty through the dealership. That’s just one more added piece of protection for the bank. If you buy a car from a private party, and it breaks, no warranty, you are stuck with a car that doesn’t run. This is a situation that banks worry about when lending money for vehicles to people with a bad credit history. They have sadly learned from experience that if someone can’t afford to pay to have their vehicle fixed, then they don’t want to continue to pay for something that doesn’t work.
For a guide on how most buy here pay here auto dealerships work, be sure to watch the following video.
There are a whole lot of dealerships across the United States, both domestic, import, and a mixture of users that have separate auto finance teams that will work with people that have bad credit. Working with a dealerships special finance department can be the fastest way to get you into a vehicle if you are trying to buy a car with bad credit. There are sites, that can assist you to find a dealership in your area that specializes in subprime financing. This means that in most cases, that they are able to help people with little credit, no credit, and bad credit.
Remember, before you sign any papers, and decide on that final monthly payment, that you need to take a serious look your finances and do not take out a loan that you will not be able to afford. There are added expenses, such as insurance, and maintenance that is not included, and are required when purchasing a vehicle, remember to factor those numbers into your monthly expenses when deciding what you can afford.
For more information on how to find auto dealerships to buy new and used cars from, please read the following related articles.