Here are some additional questions to ask yourself:

1. IS NOW THE TIME FOR A NEW CAR, OR SHOULD I WAIT A LITTLE?

If you buy a car with bad credit, it makes sense that you'll have a higher interest rate than someone with good credit. This protects the banks that lend you money.

That's why if it's already hard to find additional money for your monthly budget, you should only buy a car with bad credit when it's really an emergency.

Take a look at your situation to see if you have other options such as repairing your current car, carpooling with friends or colleagues, or taking the bus for six months or more while you work on improving your credit score.

Even a few months of paying bills on time can increase your credit score. If you can put off getting a car for a month or two, you might end up with a high enough credit score to get a lower interest rate.

2. WHAT'S MY CURRENT CREDIT SCORE?

Don’t just assume you have bad credit. Find out for yourself what your credit score is, what has affected your credit, and make sure there's no suspicious activity on your report.

Then, bring your credit report with you when you meet with the Buick GMC finance experts at Ed Martin Buick GMC so we can help you get the car loan you need.

Remember that you can get a free credit report once a year.

3. IF YOU CAN, CHOOSE A SHORTER LOAN PERIOD

Interest rates are generally lower for shorter term loans, which means that you will end up paying less for your car in the long run.

This also means that when you're no longer making car payments, you can focus on paying off other loans and continuing to improve your credit score before your next purchase.

Then you may consider buying another car with a lower interest rate, or buying one with our Buick GMC finance options, and getting the best interest rate available.

4. SHOULD I LOOK FOR A NEW CAR OR A USED ONE?

You may think that an older car will cost less, but interest rates may be higher on older vehicles.

Consider looking for buys on new cars first, and then newer used cars, since these are the cars that tend to offer the lowest interest rates.

Get into the best deal you can, given how much YOU can afford to spend on your monthly car payment.

It's still possible that you could find a better deal on an older used car, so do check out all of your options before making your final decision…and signing on the dotted line.

5. SHOULD I GET A COSIGNER?

Depending on your situation, getting a cosigner for your car loan might be the best option to get a reasonable rate. Consider looking for a cosigner if any of the following apply:

• You have bad credit.
• Your income is lower than the minimum required.
• You don't have a fixed income.
• You have a high debt-to-income ratio.

Getting someone to cosign on a car loan is a big responsibility. Your cosigner will be responsible for making payments if you aren't able to, so only get a cosigner if you are sure you can make your payments on time.

If you are able to make your monthly loan payments, having a cosigner may help decrease the amount you have to pay.

We hope this guide has been helpful. If you have any questions about buying a car with bad credit, just give our Buick GMC finance specialists a call at (317) 429-0359. Regardless of your credit, we'd love to help you afford the car you need in and around Boyertown.

Sources: www.consumeraffairs.com/automotive/buy-car-with-bad-credit.html
www.bankrate.com/loans/auto-loans/how-do-i-buy-a-car-with-bad-credit