Flexibility goes a long way before buying your dream car
Struggling to buy a dream car, but credit issues are holding you back? Long summer days often have people wanting to ride in their dream car. Achieving this dream is possible, but for consumers with credit issues, it may take some work first. Rather than being stuck in the mindset that you will only buy one specific vehicle, a little flexibility goes a long way in making your dream a reality.
Differences in the process of buying a car
When most people think about buying a car, they usually assume that the first step is choosing a vehicle. However, the first step in any car buying situation should always be to know your credit. When you have bad credit, one thing to remember is that you need to be flexible; your choices may be limited at a dealership. This is because subprime auto financing works differently than conventional auto loans.
If your credit score is around 650 or higher, you will likely qualify for a traditional car loan. In this case, you can start looking for a vehicle that you would like to own. The process of buying a classic car can be relatively simple:
- Choose your vehicle
- Get approved for a loan
- Sign your papers
- Take delivery of your vehicle
However, when your credit score is below 650, you may need to consider subprime financing, depending on your credit history. If this is the route you need to follow, there are many more steps to note. One reason for this is that subprime lenders usually work indirectly through dealerships. You will have a hard time finding direct financing in the subprime market.
The process of buying subprime automobiles is almost the reverse of the conventional process:
- Apply for a loan from a dealership
- Dealer submits your application and accompanying documents to lenders
- Lender approval is accompanied by a “payment call” to outline any additional stipulations
- The dealer presents you with a list of in-stock vehicles for which you are eligible
- Choose your vehicle from those available
- Sign your papers
- Take delivery of your vehicle
Although this process seems complicated, it can be a necessary step towards the eventual purchase of your dream car. A car loan can be one of the best ways to improve your credit. When you make all your payments on time and meet the terms of your financing, you can dramatically increase your credit score. This boost may allow your next loan to be the one that will finance the car of your dreams!
The essential
So if you want to start building your credit and one day make that dream car your reality, Auto Express Credit can help. Our dealer network specializes in assisting people in less than perfect credit situations. Take the first steps by completing a car loan application form today.