Dye Autos Denver Area Truck and Automotive Blog
Buying a car with bad credit can be intimidating. If there was ever a good example of the phrase, “Knowledge is power,” it’s in taking on the process of buying a used car when your credit is less than perfect.
The first thing you need to know is…
It’s not hopeless.
Your situation doesn’t have to be grim. If you’ve had a good track record paying previous car loans or your financial issues stemmed from uncontrollable events, you may very well be able to finance your vehicle.
In The Great Recession, many people to lost jobs and eventually made less than they once did. Medical bills, divorce and other unforeseen circumstances happen. You’re not alone.
Tip #1: Talk to your dealer first
If you’ve worked with a dealer in the past and have a good relationship, call them first. They’ve already established trust and credibility and won’t steer you wrong.
Tip #2: Work on your credit before you start shopping
Check your credit report as soon as you start thinking about buying a new car, even if it’s months or years in advance.
By cleaning up your credit before applying for a loan, you improve your chances of being approved with decent terms. Cleaning up your credit will include paying off past due accounts, disputing credit report errors, and adding positive information to your credit report.
Tip #3: Shop for a car loan just as you would if you didn’t have negative marks on your credit report.
When you’ve got bad credit, “you’re likely to agree with just about anything they’ll give you. But you shouldn’t just take the first offer you get,” warns Chris Kukla, senior vice president at the nonprofit Center for Responsible Lending.
Look for ways to save money on a car loan:
- Shorter term
- Factor in all the costs (insurance, gas, parking fees, etc)
- Get 2-3 quotes
- Make additional payments if you can
Tip #4: You’ll need a down payment
A down payment is usually required by lenders, and it’s definitely a good idea.
Why?
- It will reduce the amount you’ll need to borrow.
- It improves your chances of loan approval.
- You may get better terms with a down payment.
- It will reduce your monthly payment.
Your credit history will limit the size of the car loan you can get and a high interest rate will make the amount even lower. A down payment will offset the interest, taxes, and fees and widen the selection of vehicles you can choose from.
Tip #5: Yes, you can get Pre-approved
This fast and easy process lets you choose how much you need to borrow based on the type of vehicle you’re looking for.
Used car financing with DYE Autos is easy, click >>>here<<< to get pre-qualified. One of our helpful finance specialists will contact you to discuss any available financing options, including the amount you’re qualified to finance.
Tips #6: Read all the paperwork
Loan documents are confusing. With your money and your credit on the line, it’s important to take time to understand the terms of the loan.
Make sure the paperwork matches what you verbally agreed to.
Need help financing a car or truck with bad credit?
We’re here to help. We have over 100 years combined experience financing cars and trucks. Together, we’ll get it done! Call (303) 286-1665 or use our handy contact form >>here<<.
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Financing a used car or truck is something nearly everyone does at least once in their life. At Dye Autos, we’ve been providing financing for customers in Denver and the surrounding areas for many years. It’s still difficult for many customers to navigate the waters of auto loans and we work hard to make the process easier.
A little knowledge goes a long way.
It’s a good idea to prepare yourself from the outset so you’ll know exactly what to expect before you make this financial commitment.
The fundamentals of financing a used car or truck are:
- Type of vehicle you want
- Determine down payment amount
- Creditworthiness
- Monthly payment and terms
- Get Pre-Approved
We wrote in more detail about these fundamentals in our post here: “Answers to Your 6 Biggest Used Car Financing Questions.”
When you’ve got your fundamentals figured out, your next step is to make the actual transaction – go to the dealership and drive home in your dream car.
When you’re at the dealership financing a used car, salespeople and managers do their best to answer every question and they’re required by law to give you important disclosures. But why not bring with you a list of the 6 key questions you should ask?
All of it boils down to this: How much am I paying for the car? Get the answers to this six-pack of questions before you say yes to the financing.
6 key questions to ask when financing a used car or truck
What is the …
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Precise (down to the penny) price I’m paying for the vehicle?
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Total amount (be exact) being financed?
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Amount I’m paying for the credit (finance charge)?
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Annual percentage rate (APR) I’m paying?
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Exact amount of each payment?
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Total number of payments?
The Golden Rule of Financing a Used Car
Be prepared.
Uncertainty is not your friend, especially when you’re financing a used car or truck. The decisions you make will have a lasting effect on your life for many years to come…so choose wisely.
At Dye Autos, we pride ourselves on being transparent and responsive to your needs. We walk our customers through every step of their car or truck purchase and we’re happy to help you.
Call us today with any question you have, even if you’re not in the market to buy right now: (303) 286-1665.
“If it’s a truck you wanna buy, you’d better call Dye!”
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Surprisingly, some of the biggest discounts on a new truck come at the beginning of the year. If you’re looking for the best time of the year to buy a car or truck, be prepared to act quickly! You won’t find a better time than when the calendar changes into a New Year.
Buying a new truck can be an arduous process. People naturally get caught up in the more exciting parts of buying a new truck, such as:
- Color
- Technology
- Sound System
- Wheels
- Seats
- Mirrors
- Sidesteps
- Power outlets
- Off-road accessories
- Towing equipment
These are all super important features to consider but many people don’t stop to consider the details that could possibly save them THOUSANDS of dollars when it’s time to purchase.
4 New Truck Buying Tips to Start 2018 Off Right
Now that the New Year is upon us, you might be thinking about buying a new truck. Take the time to consider all your options to get the best deal possible.
1. You can save money if you buy on New Year’s Eve.
According to TrueCar, big discounts happen on the last day of the year. Their data show discounts as much as 8.5%.
This is because it’s the last day a dealer has the opportunity to make both their quarterly AND yearly goals. Salespeople potentially have year-end bonuses on the line so they want to get the cars out the door before the midnight.
Everybody wants to save money on their new truck and your best chance to do it is on New Year’s Eve.
2. New Year’s Eve Hangover
Dealers trying to close out their year will often allow discounts that “hang over” into the New Year.
When dealers are busy on New Year’s Eve, there sometimes isn’t enough time to get every deal completed. The new truck deal you’re craving could still be available on January 1st, but only if you act quickly.
3. Forlorn salespeople are eager to sell.
It’s tough for car salespeople sitting in empty showrooms when almost everybody else is sitting at home watching football, recovering from late night parties, or not daring to venture out into the cold.
The only consolation for a car salesperson in this situation is to sell a car or two.
When salespeople are eager to sell, that makes a great opportunity for a savvy buyer.
4. Dealers need to clear their Inventory for new models.
Every dealer has inventory at the end of the year that they want to get rid of.
Used car prices tend to go through a predictable cycle in which they peak during the summer months followed by a downward slope hitting rock bottom around January 10th.
Prices tend to shoot back up quickly through February.
If your 2018 plans say it’s time for a new truck…
Remember these tips when you’re ready to buy. At DYE Autos we’re here to help you anyway we can so please reach out to us anytime!
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The topic our customers ask about most often is used car financing.
We know used car financing is complicated. Just remember that it’s ok to learn as you go. Here are a few tips to get you started on the right track.
1. Do I need to make a down payment?
A down payment isn’t always required for purchase, but it’s definitely a good idea.
Why?
- It will reduce the amount you’ll need to borrow.
- It improves your chances of loan approval.
- You may get better terms with a down payment.
- It will reduce your monthly payment.
Your trade-in vehicle can serve as a down payment. If you still owe on that car loan, the amount of “equity” you have can serve as your down payment. “Equity” is the difference between your trade-in’s loan payoff amount and the actual cash value of your car.
Depending whether you have a trade-in or not, and if you can swing it, any additional down payment – even a few hundred dollars – has a very positive effect in the long term.
2. Can I get approved if I have bad or damaged credit?
There are car loans for people with bad or damaged credit, but you need to be careful when shopping.
Auto loan seekers with bad or damaged credit should enter the car loan process knowing they’ll pay a higher rate than someone with better credit. But don’t let that discourage you.
At DYE Autos, we successfully provide car loan options to customers with many different credit profiles. We have over 70 years experience and we’ll help you!
3. Why does a car’s age and mileage affect my financing options?
In the world of used cars, two factors have a major effect on pricing: mileage and age.
It’s no surprise that higher-mileage cars and trucks carry more affordable price tags, however, many car loan companies may be unwilling to offer terms on older vehicles. There’s more risk involved and that equates to higher car loan interest rates.
4. How much should my payment be?
Everybody’s car buying budget is different but if you’re planning on financing a car or truck, your monthly payment is always a consideration.
As a general rule, your car payment should not exceed 20% of your take-home pay. This rule should include all financed vehicles in your household, whether you have one or ten cars in your garage.
5. How much car can I afford?
It’s never good to just guess at what car you can afford. It’s too easy to get caught up in the excitement, and then miss important details.
A better approach is to make the best choice for YOU so that you don’t end up saddled with a something you can’t afford.
At DYE Autos, we recommend that before picking a random price range that you feel comfortable with, you consider all the factors that contribute to the cost of your vehicle.
- Finance rate and loan term
- Value of your trade-in (if you have one)
- Down payment amount
- Monthly gas and repairs
- Insurance costs
Information is power. Instead of merely picking a price range, you can use an online loan calculator or better yet, give us a call and we’ll help you decide how much you can afford to spend on your next car or truck.
6. Should I get pre-qualified?
Yes, and it’s a good idea!
This fast and easy process lets you choose how much you want to borrow based on the type of vehicle you’re looking for. If you’re interested in used car financing with DYE Autos, click >>>here<<< to get pre-qualified.
One of our helpful finance specialists will contact you to discuss any available financing options, including the amount you’re qualified to finance.
Got more questions? We’re here to answer them. Call us at (303) 286-1665 or just use our contact form >>>here<<<
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