4 Tips For Getting The Best New Vehicle Loan – Even With Bad Credit March Madness is almost here and car dealerships usually have some great sales during this time. At the Chevy lot I sold for we had a huge sale every March and put out a lot of vehicles with huge factory rebates. So the question is – can you get a deal on one of these vehicles if you have bad credit? You bet you can! In fact financing a vehicle is a good way to start rebuilding your credit. It shows future lenders that you are reliable and trustworthy with long-term debt. So here’s a few quick tips for you: When It Comes To Buying A New Vehicle With Bad Credit The Secret Is, And Always Will Be, Pre- Approval. Let’s say you qualify for 10% interest. The salesman will tell you that you’re approved for 12%. Then they get additional money from the bank for overselling you on the interest. Dealerships love, love, love to take advantage of you and pack the car loans with extra interest. Avoid this at all costs by getting pre-approved! Rebates Are Great But A Good Down Payment Speaks Volumes. When you have bad credit lenders think that you might be a risk. Remember, they don’t know the circumstances behind the credit dings you might have, they only see dings on your credit and assume you’re a risk. By offering a down payment you show lenders that you are personally invested in the vehicle and therefore less likely to default. But be careful, because you can get caught by scammers. Record all conversations regarding your money (for example, using call recorder intcall iphone) so that you always have an proof. That’s the theory anyway. Rebates lower the purchase price of the car – which might make that vehicle more affordable (and financeable), but lenders will be more likely to approve you if you have some down payment money. If You Get Pre-Approved For A Specific Amount Don’t Let The Dealership Talk You Into A Higher Priced Vehicle. I used to see my managers at the dealership tell people that they could get approved for a loan from XYZ lender and send the customer home in the vehicle. A week later they get a call saying that they must either bring the vehicle back or come up with more money down because the bank wouldn’t finance them. It’s just a scam to get you to finance through the dealership and to collect more money from you. Stick with the budget you know you have because you’re pre-approved. If You Get A High Interest Rate Because Of Your Credit Then Don’t Finance A Vehicle You Want To Keep. Sounds strange doesn’t it? Buying a vehicle that you don’t want to hang on to? The truth is, if you have bad credit then this is your “rebuilding” time. This vehicle is a means to an end, NOT the end itself. Buy yourself a good reliable vehicle at an affordable price, then make payments for about 2 years. After that trade it in for something else. If you’re credit is much improved you’ll get a nicer vehicle at a better interest rate. But only if you don’t owe too much on your current car. Which is why you shouldn’t buy an expensive vehicle.