How to buy a car with bad credit
Bad credit. Just the phrase is scary, right? But it’s something that is all too familiar to millions of us. Plus, it can happen in a variety of ways – missed payments, a failed business, divorce, a serious illness, etc. Life isn’t always easy and sometimes poor credit is a side effect.
The good news is that no matter how it develops, finding yourself in need of rebuilding your credit doesn’t mean you can’t get financing for a car. In fact, Drive® works with consumers with all types of credit to help get them into their next ride.
Since every shopper’s position is different, planning your car-buying process may help you understand what’s right for you, and how best to achieve it. Check out how, at Drive, we take a different approach to the car-buying process and make it work for you.
What’s right for you?
Buying a car with bad credit is about what’s right for your specific situation. And Drive understands that. Drive pre-qualifies people with all types of credit and matches them to cars that meet their lifestyle and budget. Shopping pre-qualified vehicles that fit your budget helps ensure you are browsing realistic options, and helps you avoid long and defeating conversations at a dealer when the car just won’t work. At Drive, we’ll be there to help you every step of the way with educational tools and tips.
What can you afford?
Auto finance calculators are useful tools designed to help estimate what you can afford, but they usually rely on inaccurate finance estimates that may not provide a real picture of your budget. After pre-qualifying with Drive with no impact to your credit score, you will be able to gain real insights into your financing with our Budget Customizer.
This helpful tool is more powerful and personalized than traditional finance calculators, and shows you how your budget, down payment and term selection affect your pre-qualified vehicle options … all in real time. By setting your preferred budget terms before shopping, we’re able to show you vehicle options that work for your lifestyle and budget, allowing you to complete your purchase at the dealership with ease.
Credit scores and credit reports
A credit score is an indicator of someone’s creditworthiness, and helps lenders predict how likely you are to pay back a loan on time. Credit scores are made up of many factors, including your bill-payment history, current unpaid debt, number and type of loan accounts you have, and how long you have had your accounts open. When applying for an auto loan, lenders take a range of factors into account when deciding whether to lend and determining your interest rate. Most will consider your credit score as a part of these decisions. If you’re worried your credit score may limit your financing options, a great first step is pre-qualifying with Drive. Pre-qualifying will not impact your credit score and can give you an idea of whether you will be approved for auto financing at a dealership. Plus, it gives you a realistic view of in-budget vehicle options.
You can get free copies of all three credit reports every 12 months from AnnualCreditReport.com.
Money down and trading in a vehicle
When financing a car, a down payment or trading in your current vehicle might help your position. Each may lower the amount you’re requesting to borrow and show the lender that you’re committed to the deal. This lowers the lender’s assessment of your risk, allowing them to offer you a lower interest rate.
Teaming up with a co-applicant
By teaming up with a co-applicant, you may improve your chances of getting financing or receive a better offer. If you and your co-applicant are approved for a loan at the dealership, you become co-borrowers who share responsibility for paying back the loan and have the same rights to the vehicle.
Choosing a vehicle
When choosing a vehicle, it’s important to consider your lifestyle and budget so you shop realistic options that satisfy your needs. After pre-qualifying with Drive and setting your budget in our Budget Customizer, we show you many vehicles near you with real rates and payments that match your budget.
Now that you’re shopping within your budget, you can use filters or search terms to narrow in on the perfect vehicle for you. Once you find the right car, you can save the finance terms and enter the dealership with confidence that your interest rate won’t change.
Finding a dealership
If you’re like the typical car shopper, spending several hours at a dealership to get financing is not your idea of a good time. Finding the right vehicle that fits your lifestyle and budget from the start makes buying a car quicker and easier.
Drive works with a network of dealerships across the United States, allowing you to shop a variety of new and used vehicles to find the right one for you.
Pre-qualified consumers shop vehicles within their budget from nearby dealerships. Once you find the right car and save your preferred financing terms, you’ll be able to head to the dealership and finance the car with the interest rate you saw online.
Going online
Drive makes pre-qualifying for car loans simple – even if you’re currently working on rebuilding your credit. Drive’s online process is quick, easy and will not impact your credit score.
You can fill out the short form from anywhere and get pre-qualified in seconds, giving you control over your financing and the power to shop with the confidence of a cash buyer.
Pre-qualify for a car loan.
Pre-qualifying online takes just a few minutes. It’s free, and will not impact your credit score. Get Started
