Here is a common question for many car buyers and it’s kind of easy to solve. How should I go about auto finance shopping? Before you answer this question you need to know what your credit score is, plain and simple. Low to no down payment used cars aren’t the worst idea but see what you can get pre-approved for way before talking to a car dealership.
Know that will help you know how much help you need when it comes down to the auto financing part at the car dealership.
Do you have bad credit if you do you might need to look for bad credit car dealers or buy here pay here dealers they might be the only ones that can really help you?
With these types of car dealers you need to have a steady job and a down payment because to most lenders that focus on bad credit you can be seen as a risk that no one wants to take on you.
The list the car dealerships like to see with low down payment financing
Usually, bad credit car dealers in Philadelphia want to see a list of requirements before they can say yes to you these can range from:
- The income of $1,500 a month
- A job for a year
- Must be 18 years old
- Must have a drivers license
- Be willing to purchase a used car
Most car dealerships want a down payment and this can vary from dealer to dealer, some might want $1000 down for a car, some might want $500 down for a used car, or buy here pay here car lots might have no money down for a used car in Philadelphia.
You should have something to put down and to be honest car dealer-lenders like to see the “skin in the game”. This means they won’t be out to dry if you don’t pay because you have a little equity in the car.
You want to shop car loan terms and really nothing over 60 months. You can compare car dealers and the vehicles they have on their lot. But if your credit is crap you want to get it above 650 really to get the best interest rates out there on the used car market.
Next set a budget to see how much you can spend on a used car in Philadelphia you don’t want to go broke owning a car.
The benefit of pre-approval used car loans in Philadelphia
One thing that is recommended is to see if you can get a pre-approval for a car loan than that will cut own some of the dealer jargon and you can cut bait for a used car.
If you’re pre-approved the car dealership can’t push used cars on you and that also means they can lose out on a sale if it’s not in your price range so it can be a win for you at the dealer.
You can work with a company to help you get placed for used cars locally in Philadelphia that offer low down payment auto loans.