Used car sales can be very confusing. Between monthly payments, sales taxes, add-ons, cosigners, credit scores and different forms of insurance, there are many things you need to think about before you decide on a car. Here are some important tips that can help you make an informed decision about what kind of used car might be best for you, and how to get it with bad credit.
Know your credit score
Before you start the purchasing process, you should know your credit score. This is important because it will have an impact on the financing you receive. Credit scores typically range from 300 to 850; the lower your credit score, the higher your interest rate for financing is likely to be.
If you do not know your score, you should find out. You can request online for any of the credit bureaus (Experian, Equifax or Transunion) to send a credit report to you in the mail free of charge. Alternatively, you can get a free score instantly on iOS or Android using an app such as Credit Karma.
Look carefully at your credit report, as errors are quite common. If there are items on your credit report that you do not recognize, you should report them to all three credit bureaus online without delay. This is important because it can improve your score.
Unlike some dealerships, Wheel City Auto reports payments to the credit bureaus as you pay off your loan over time. This can be very helpful for people who want to build credit.
Also, if you have bad credit it doesn’t automatically disqualify you from buying a car from Wheel City Auto. Wheel City looks at other factors such as time of residence, length of job held, references, and more.
Decide on your limits
Before you go in to purchase a car, you should have a good idea of what you are looking for. Think about the size of car you need, what brands you prefer, how many miles on the car you can accept, and the total you can afford to pay. Since monthly payments may carry on for different lengths of time, thinking in terms of the total you will be able to pay, rather than monthly payments can save you money.
Do your research
Make sure you do your due diligence on the car before you sign on the dotted line. The most important thing to do is to find out about the vehicle’s history. Use the Vehicle Identification Number (VIN) on services such as CarFax or AutoCheck to find out about the car’s ownership, maintenance, service and any accident history. AutoCheck tends to be better for used cars.
You should also research the type of car you are thinking about before you make a purchase decision. Find out what objective reviews such as those by Consumer Reports say about this make and model. You should also evaluate how likely this make and model is to be reliable and durable.
The many facets of used car sales can tie consumers in knots. But it doesn’t have to be a nightmare. If you follow these tips and do your due diligence, you can find the right used car for you.