Buying a Car with Bad Credit – Why So Many Americans Fall Short

April 21st, 2010 by admin

Have you ever thought about what it takes to get approved for a car loan with bad credit?

There’s quite a bit of information about it online and the sheer multitude of editorials on the subject can be astounding. Are there really that many people with credit problems in the U.S.?

Seems to be so.

Statistics show that over 70% of people living in the United States have less than perfect credit. This being the case after the recent years economic blunders. Jobless rates being as they are as well as, the loss of investment and retirement account values have played a role.

Living above our means may be a key player. More people are living on credit cards than ever. It seems that with the constant bombardment in the media begging us to buy things on credit, more and more people are living a “buying lifestyle” that is above and beyond their true financial outlook.

Everything comes to an end though and debt collectors will always have job security. At least so long as we as a nation, continue on this path to financial prosperity by means of wallets full of plastic.

Plastic used to be innovative, something to create new products with. I fear that the most damaging aspect of our economy has to do with just that… plastic.

Credit cards are damaging credit reports. There is no mistake about it.

So, what do you do when you have bad credit and need to buy a car? Seems that there are more and more secondary lenders now that are providing auto loans to people that have the credit blues. Here’s a few tidbits that you may wish to keep in mind when going for a bad credit car loan.

1) Keep it real. Don’t go out trying to buy a car that is the latest trend. Get something that is realistic and well within your budget. Just because the dealer says that you can afford it, doesn’t mean that it fits within your financial future. Get something that is easily affordable, rather than going for all the “bling bling” that so many are seeking after these days. Your friends might be impressed, but you sure won’t when you need extra cash for an unexpected expense and can’t afford it due to your high car payments that are supposed to be “what you can afford” according to a car dealer.

2) Shop around. Don’t just go for the first thing that you’re offered. There are many different companies that can help you if you look around.

3) Don’t fall into the lease trap. Yeah, leases are attractive but your car insurance will be higher, along with the interest rates being through the roof.

Keeping it real,

P.J. Barnum