How To Buy A Car With Bad Credit Today

In today's unstable economic climate, car dealers going out of business, and banks unwillingness to loan money, it makes it increasingly hard to buy a car if you have bad credit.

There are car loans for people with bad credit, even if they have been turned down before.

If you find yourself in need of a car and your credit is an issue, you may have noticed the overwhelming amount of "WE FINANCE" car ads in the paper.

Many of them are even some of the new car dealerships, some are just Buy Here Pay Here Car Dealers but both have ads that sometimes seem just too good to be true.

Okay, there are a few things you should know before going to a Buy Here Pay Here Car Dealer. Although it will be much easier to get a car loan here than at the larger, new car dealership, there are still certain requirements you must meet to qualify for a Buy Here Pay Here car.

The fewer of these requirements you can meet, then the larger your down payment will have to be.

Many of the Buy Here Pay Here car lots are now installing a satellite tracking device that has the ability to disable the car if you fail to meet your obligations.

Here are the basic requirements of most Buy Here Pay Here Car lots:

1. Stable employment
2. Proof of Income
3. Proof of Residence
4. Drivers license & Insurance
5. DOWN PAYMENT

If you are unable to provide most of these documents, be prepared to pay at least 25% down if your credit is below par. "Cash is King " and will usually help get past some of the little things. Remember the Buy Here Pay Here car lots are not going to run a credit check, so that will not play a factor in whether you get financed or not.

Now on the requirements of employment and residence, most want at least 3 months time. For proof of employment, it could be check stubs, letter from employer, bank statements, tax returns or some may even just take your word for it if you have the all the rest and the down payment (just be careful).

Proof of residence can usually be any utility bill, bank statement, credit card statement or maybe a lease agreement. Of course you will need your license and either some form of auto insurance or an insurance binder.

Then comes the painful part...the down payment, this sometimes can be quite substantial or it can be very reasonable. It really depends on a few factors:

• Other documentation you provide
• Type of car
• Age of the vehicle

I am sure you have seen the ads from the new car dealerships advertising their "We finance everybody" ads, if you have a job and proof of residence, you can drive away in a new car.

Unfortunately, most of these ads they run in the paper, on the radio and even on TV are mainly to get the masses into their dealerships and get a credit application.

They have trained staff that will attempt to get you into that new car, making you believe you can get it, for that $250 or $300 a month payment

The longer you stay at the dealership the more they convince you its the only choice you have to end up with a "new" car.

While the new car part may be true, do you really want to pay $2000- $4000 down and end up with a $700 month car payment on the economy car of whatever particular dealership you are at? I don't think so.

So, we are back to the Buy Here Pay Here Car lots. Their deals are really not that bad when you realize how much you have to pay just to get that new economy car that loses at least 20% of its value as soon as you drive it off the lot.

When looking at all the ads for Buy Here Pay Here car dealers, call around, do your homework, find one that is established. These dealers provide a service to this ever growing market of people who need cars but who otherwise don't have an option.