There are many things that you should think about before you take that plunge and get an auto loan. If you have bad credit, and you are trying to get an auto loan, do your research. Find a dealer that specializes in sub prime financing. There are hundreds of dealerships across the United States that offer auto loans for people with bad credit. The dealerships website may be able to tell you before you go whether or not the dealership offers a special finance department. As the name implies, a special finance department specializes in helping people obtain bad credit auto loans. The internet is also a great tool to help you find these dealerships. Sites like http://carcredit.com and http://autoloans.com will help by assisting you in locating a dealership based on your location that specializes in bad credit car loans.

Dealerships that offer special finance departments are generally able to help people with little or no credit, and of course, bad credit. Not only do they have the banks on hand, they are also more understanding than dealerships that ignore the sub prime market, and even differ from their own finance departments. The special finance department is almost always separate from their regular financing department. They also have much more knowledge about their used vehicle inventory, that is to say, that they are not going to be pushing you to purchase the top of the line newest model vehicle with all the bells and whistles. They will ask you how much you want your payment to be, and work with you and the sub prime banks to try and secure a monthly payment that you will be able to afford.

Before you start your quest to purchase, it’s always good to try and save up for a down payment. Even a small one under a thousand dollars to put down on a vehicle can reduce your interest rate and therefore monthly payment saving you money in the long run. If it’s your first car buying experience, it might be a good idea to put off your purchase for a few months until you have trotted through a few money saving exercises. Pretend that you have your car now, and make payments to yourself for the amount you expect to pay in insurance, gas, and of course your monthly auto loan payment. This may help you in making adjustments to how much you can afford and can help you save a few dollars.

Think about maintenance and what you want to buy and how you plan to drive. Chances are that over the term of a 5 year loan you are going to have to have your brake pads replaced, and if you chose a luxury vehicle that will drive up the price of that service and just about every other service you get, including oil changes. If you are planning on ruling the off road, tires are going to be a must.

Remember, before you sign any papers, and decide on that final monthly payment, that you need to take a serious look your finances and do not take out a loan that you will not be able to afford. There are added expenses, such as insurance, and maintenance that are not included, and are required when purchasing a vehicle, remember to factor those numbers into your monthly expenses when deciding what you can afford.

Author Bio: Magnus Larsen is a staff writer for NatLeads, inc http://www.afterbk.com http://www.easybadcreditcarloan.info http://easycarloansforbadcredit.info

Category: Automotive
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