You’re feeling the pinch of being short on cash. You need a car. Yet, you don’t have a good credit score that can give you a prime rate for a car loan. Well, it’s time to play the field. There are more ways than ever before to get financed when your credit history is less than ideal. The days of being turned down by every single lender and dealership you visit are over.Here is how a little knowledge could save you a lot of time and money down the road.

1. No One Can Exploit You

Lack of knowledge predisposes you to exploitation by salespeople. However, if you are an informed buyer, the dealer will know you’ve taken the time to think it through. As such, you’ll have more control during negotiations instead of being pressured into accepting certain offers.

2. You Can Choose a Loan Term That Suits You

Proper planning allows you to determine your budget and the loan terms you’re comfortable with. Ensure you’ve used a loan calculator to adjust the terms and see how they impactyour monthly payment.

No one understands your budget better than you, so you should know how much you can afford every month. Play around with varied loan durations until you get a loan term that fits your financial situation. Doing these calculations at your convenience without the influence of a dealer will ensure that you’re making better decisions. 

3. You Will Simplify Negotiations 

One of the first things car dealerships low credit want to know is the amount you can afford to pay per month. If you have already figured out the amount, you are in a stronger position to negotiate. Do not wait until you’re in the hot seat at the dealership to determine your monthly budget. 

4. You’ll Know How to Keep Different Transactions Separate

The process of acquiring a car through a low-credit dealer can take a plethora of steps. Financing, trade-in, and closing are all unique in their own ways. You want to talk about the price of the car first before letting the dealer know that you have a trade-in. Combining them lowers your chances of getting the best possible deal.

5. You Can Identify Your Rate Ahead of Time

Even with low credit, always get pre-approved before visiting a car dealer. By doing so, you force the dealer to beat your price. Car dealerships can get the lowest financing rates possible, but when you have a pre-approved loan, they have no option but to match it so they don’t lose you as a customer.

During the first appointment with the dealer, they will ask for your approved rate. Before revealing the full information, ask what their best interest rate is. Take their offer only if it’s better than what’s in the pre-approval. However, be keen on the terms and conditions offered and ensure that the dealer doesn’t alter them for their own gain. 

Verdict: Knowledge Is Power 

Do you know what your financing options are? It is not only about the car you want to buy, the payment you can afford, or even how much it will cost you at the end of the day. You must be familiar with all those terms that sometimes seem confusing. Raw deals from bad credit car dealers may seem risky, but the actual danger is letting the dealer decide everything for you. The more opaque the process is, the more likely they will take advantage of you, so you end up overpaying for the car. Knowing your options before stepping into a dealership will keep you ahead of the game despite your low credit status.