Credit Issues

November 9th, 2016 by

Buying a car with poor credit can prove to be a challenge, and an exhausting one. In most cases, having a car is necessary to do every day things; pick up kids, go grocery shopping, get to work, etc. Just because you have a credit history that may have a few bumps and bruises, that doesn’t mean that you can’t get approved for a car loan. Here at Smart Motors, we have our own private lender that works hard to try and get everyone approved.
Here is some important information and some simple stops to follow to help you get approved for a can loan even with bad credit.

Don’t agree to take the car until you sign

A lot of dealerships will focus on payment and prices to get you to agree to go home in a new vehicle before they have your financing secured with a lender. What that means is the dealership is still looking for a bank that will approve you. Sometimes they can’t find a lender that will “buy” your loan, and can’t get you approved for financing. If this happens, then you have to bring back the vehicle.
Best practice is to look over your documents closely to make sure this doesn’t happen to you. If it says anything near where you sign “subject to approval” that means they still haven’t found someone to approve you. If you catch this, have a conversation with your salesman and get a clear understanding of the process and situation.

Think of car loans in months, not payments

A low payment on an auto loan is usually everyone’s main goal when buying a new car. Keep in mind, the longer the term, the more interest you will pay for the lifetime of the loan. If a shorter term works with your budget, take advantage of that. It will save you a lot of money in interest.

Be prepared when you head to the dealership

Before you head to Smart Motors, you will need to bring your drivers license, 2 recent pay stubs, and proof of residency. Be prepared to do a down payment that day, and have insurance available or money set aside to purchase a policy. Please set at least 2 hours aside for your visit. You can follow this link to do the per-qualification .

You can get approved for an auto loan with bad credit, just remember to do your research and be cautious of any dealership that misleads you in any way during the car purchasing process.

Call us at 520-314-4555 or visit our website with any questions.

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