Get Approved Today – Used Car Buying Tips With Poor Credit Scores In O’Fallon
June 15, 2021
Need a car or truck to get your business started but stuck with bad credit? Don’t agree to poor loan terms. Check out 5 Star Auto Plaza’s used car buying tips with poor credit scores to improve your offer!
The first tip is pretty obvious—know where you stand. Get your credit score report from Equifax, TransUnion, or Experian before speaking with dealerships to see what options are available to you. Don’t be fixated on your ‘dream’ car or truck. If your credit score is low, take a financially practical vehicle and rebuild your score.
If your credit score is on the lower end of the spectrum, expect to pay a higher interest rate. While only a good score can reduce how much you pay, know what applies to you and don’t accept impractical terms. Find a dealership that provides payment plans for commercial buyers with low budgets and guaranteed financing solutions.
When negotiating terms with a seller, don’t include the value of your trade-in. Keep its value separate from what you’re willing to pay. Use the trade-in later to reduce your monthly installments and the down payment as well.
If your credit score is low, you can reduce how much you borrow by increasing the down payment you provide. This will improve the terms of your loan and your interest rate.
Getting pre-approved before speaking with a dealer does not motivate them to find an offer that’s best for you. Instead, it gives them leeway to markup the interest rate and earns them a larger profit.
At 5 Star Auto Plaza, we don’t believe that your creditworthiness is limited to a score! Whether it is help for used car buying tips with poor credit or financing options for purchasing new vehicles, we always have a solution. Call us on (636) 940-7600 to get started today!