5/6/19

Still Possible to Buy Your Next Vehicle Even With Credit Challenges


Emich VW Finance Center

Purchasing a vehicle if you have bad credit or no credit can be a stressful situation.  At Emich Volkswagen in Denver, our finance experts are eager to help you secure financing that will help you build or re-build credit.  There are several steps you can take to help in the vehicle finance process.

First, know your credit score.  You can access that information for a variety of sources.  This will help you to understand the potential impact on your ability to finance which might include a more expensive interest rate or lack of ability to purchase a pricey vehicle.  Depending on your credit score, you might be looking at higher interest rates reserved for non-prime, subprime, and deep subprime borrowers.  This information will be helpful for you to choose the price range of vehicle to shop for. 

Review your budget to determine how much payment you can comfortably afford.  Remember to factor in expenses such as insurance, maintenance, licensing fees, and fuel costs.  This will help you compile a complete picture of the potential expenses related to the vehicle purchase.  Sticking to a comfortable payment might mean forgoing features you can do without, but it will be worth it when you can make payments without a struggle.

If possible, save aside some money for a down payment.  With bad or new credit customers, a bank might like to have this down payment as a type of commitment from the consumer.  If you have a vehicle with equity to trade in, this might take the place of a cash down payment in many instances.

Before heading to the dealership, you can get pre-approved on our website.  That means you will have a strong idea of your ability to make a vehicle purchase when you reach the dealership.  Also, make sure to gather together any pertinent financial documents you might need when you meet with our finance experts.  If you have any questions regarding what to bring with, give us a call and let us help you figure that out.

When you get to the dealership, have a realistic expectation regarding the vehicle you can afford to purchase.  Perhaps looking at a gently used vehicle will allow you to afford more features within your desired payment.  Let our helpful sales staff know what factors are most important in your vehicle purchase.  Do you need room to carry a large family or lots of cargo?  Do you have a long commute that necessitates fuel efficiency above all else?  Is there one luxury feature you just can’t do without?  Let us help you find the best vehicle option for you at a price that fits into your budget.

Purchasing a vehicle can be helpful in building and re-building credit.  So, after you drive home in your new or new-to-you vehicle, make sure to pay your monthly payment promptly.  Keep on track with your finances and you will be a prime borrower before you know it!

No comments: