You’ve got bad credit and dealer after dealer is wanting money down. To buy a car with bad credit, with no money down, you need to know a few things.

First, there are only two reasons that a dealer would want a down payment…

The most common reason is because it adds profit to the sale. The other less common reason is because it’s needed to lower the total amount financed for approval by the lender. Trying to figure out which is the real motivation to pressuring you for cash is a little difficult so long as, you are depending on the dealer to get you approved.

Most people think that if they have bad credit, they have to use the financing offered through the car dealership. After all, the local bank won’t give you a loan right? This is a common mistake that can cost you thousands of dollars in outrageous finance charges.

Let me fill you in on a little BIG secret…

Car dealerships mark up the price of the car. Everyone knows that. Did you know that they ALSO mark up the interest rate? Yes, they do. They submit your credit application to lenders. The lender responds with an offer. Let’s say that they approve you for a rate of 9%. Guess what? The dealer, knowing that you know you have bad credit will try to convince you that you are approved at 12%. The 3% difference becomes nothing more than profit that the finance manager gets paid a commission on. Guess you pays for it… you. Your payments go up 10, 20, 30, 50 or even $100.00 per month simply because the dealership marked up the interest rate.

The truth is this. You can buy a car with bad credit with no down payment and also with lower interest rates by simply avoiding the dealer finance department altogether. If you know where to look and prearrange your financing (yes it’s done everyday), then you can have the confidence to walk into a dealership, pick out the car of your choice based on the amount the finance company preapproves you for and had the dealer a check. This puts the power of negotiating price in your favor.

Car dealers will be jumping over backwards for your business.

Find Legitimate Lending Sources Here: Buying Cars with Bad Credit.

(http://www.BuyingCarswithBadCredit.com)

Jason Lanier

Technorati Tags: Bad Credit, Car Dealership, Car Dealerships, Confidence, Credit Application, Finance Charges, Finance Company, Finance Department, Finance Manager, Guess, Interest Rate, Interest Rates, Lenders, Local Bank, Mistake, Money Down, Motivation, Secret Car, Thousands Of Dollars, Truth

Used car traders are the biggest source of used cars nationwide since they provide a good deal of variety and options, provide financing deals, and even give in maintenance services including road-side assist for free. Apart from all these, it is viewed as easier to purchase from used cars dealerships and is even safer for consumers compared to purchasing from private traders.

It is essential to discover the credibility of used car dealers before being scammed into buying a used car that you do not even want. Online car dealerships may be checked for records of bad deals in consumer welfare administration agencies.

Likewise, registered car dealers offer up extended dealer’s guarantee which is greatly advantageous to the purchaser. The extended warranty stretches long after you have gained the vehicle. They too protect their business concern and the customer by offering title guaranteed against stolen cars since the government follows through rigorous laws against the sale of stolen vehicles.

 Bigger used car dealers may also offer financial help at modest interests and varying time periods. Some even offer discounts using one of the best rewards credit cards .This makes automobile payments easier on the budget-savvy buyers. Trading in your last car for a younger vehicle is also an alternative that car dealerships may advise. When planning to sell your car, this may be one of your best options since it takes away the worry of looking for perspective buyers for your car. Further, a dealer’s compensation fund that protects consumers from defective vehicles is also provided by car dealerships. Consumers who buy vehicles from registered dealers are also protected by the government through numerous consumer protection and business acts.

Technorati Tags: Automobile Payments, Best Rewards Credit Cards, Business Acts, Business Concern, Buying A Used Car, Car Dealerships, Car Traders, Compensation Fund, Consumer Welfare, Defective Vehicles, Extended Warranty, Financial Help, Last Car, Maintenance Services, Perspective Buyers, Private Traders, Savvy Buyers, Second Hand Cars, Time Periods, Welfare Administration