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What To Expect When You Go To Car Places That Accept No Credit

What To Expect When You Go To Car Places That Accept No Credit

When you go to a car dealership that offers financing for those with bad credit, you can expect to be asked for a down payment. The size of the down payment will depend on the dealership and the type of car you’re interested in, but it could be as much as 20% of the car’s total value. You’ll also likely be asked to provide proof of income and employment, as well as proof of residence. The dealership will likely want to see your most recent pay stubs, bank statements, and utility bills.

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In addition to a down payment, you can expect to pay a higher interest rate on your car loan if you have bad credit. The average interest rate for a car loan is around 4%, but if you have bad credit, you could be paying closer to 10%. This means that over the life of a five-year loan, you could end up paying thousands of dollars more in interest.

Finally, you can expect to be offered a shorter loan term when you have bad credit. Loan terms for new cars are typically for six or seven years, but if you have bad credit, you may only be offered a loan for three or four years. This means that you’ll have a higher monthly payment, but you’ll also pay off the loan faster.

If you’re considering purchasing a car from a dealership that offers financing for those with bad credit, it’s important to be prepared. By knowing what to expect, you can negotiate the best deal possible and avoid being taken advantage of.

When you go to a car dealership that accepts no credit, you can expect to be treated a little differently than you would at a traditional dealership. For one, you may be asked to put down a larger down payment than usual. This is because the dealership is taking on more of a risk by lending you money without knowing your credit history.

You can also expect to pay a higher interest rate on your loan. This is because, again, the dealership is taking on more of a risk by lending you money without knowing your credit history.

That said, there are some advantages to going to a dealership that accepts no credit. For one, you may be able to negotiate a lower price on the car you want. This is because the dealership is more motivated to sell you a car since they are taking on more of a risk.

So, if you’re thinking of going to a car dealership that accepts no credit, be prepared to put down a larger down payment and pay a higher interest rate. But, you may be able to negotiate a lower price on the car you want.

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About the Author: Linda Clevenger

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