I Want a New Car But Have Bad Credit – What Should I Do?

If you want a new car and have bad credit, then you have probably not been very happy with the answers that you have been getting at car dealerships.

Usually, when you test drive a car and a new car dealer and fill out a credit application, the salesman will typically try to interest you in a used car. The odd caveat of this is that the payments for a used car can frequently be more than the payments on a new car because of the types of lenders that dealerships typically use.

The payments on used cars being about the same as the payments on a comparable new car is due to the fact that new cars can be financed for a longer period of time. So, when you have looked at a $ 15,000 used-car that will have payments of $ 350-$ 450, depending on interest rates, you would actually pay about the same thing for a brand-new $ 20,000 car. This is because the newer car can be financed one or two years longer than the used-car.

Now, those are not exact figues, but a representation of a typical deal.

It’s very discouraging when you have smelled the new car smell and driven a new car, only to be told that you need to be looking at a used car because of your credit. After having driven the new car, every thing else on the used-car lot just does not seem to compare.

There is really exciting news if you have bad credit and would like to entertain the idea of buying a new car instead of a used car. Some lenders look at new cars as being better for people that have bad credit. This is because new cars naturally have a new car warranty, which means that you will not be spending out-of-pocket money for car repairs for the first few years that you are making your car payments.

If you want a new car with bad credit, your best option is to use a lender that caters to people that are in your situation. There are a few good resources for this that can give you an easy approval on the Internet.