Buying a New Car with Bad Credit

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - December 26, 2019

Purchasing a new car can be one of life’s more exciting moments. That new vehicle smell, new interior, and new ride may be lingering in the back of a buyer’s mind, but it may be difficult to find financing if you've got bad credit. This is where CarsDirect steps in and removes the stress.

Benefits of Buying a New Car

What are the benefits of buying a new car instead of a cheaper used vehicle? Most important is the savings in costly car repairs. Used vehicles can have serious problems that could require hundreds of dollars in repairs.

A new car gives a buyer a more reliable ride with a manufacturer-backed warranty to cover most potential problems.

Preparing for a New Car Loan

In order to get financing, a buyer needs to come in prepared. It isn’t as simple as walking into a dealership and asking for a vehicle, the buyer needs to provide documentation in order to qualify for financing.

There are five things you need to do before heading to a dealership or lender:

  • Check credit reports and FICO scores. If there are any mistakes, get them fixed by contacting the reporting credit bureau and disputing them.
  • Save copies of at least a month's worth of pay check stubs to present to the lender for proof of income.
  • Bring a copy of an electric bill or cable bill to prove residence, and a bill for a working contract or landline phone to serve as proof of phone.
  • A valid driver’s license is a must as your proof of identification.
  • Provide a list of five to eight personal references complete with names, addresses, and phone numbers. These references typically can’t live in the same residence as the buyer.

Many manufacturers and dealers are willing to help new car buyers who also have bad credit. Mitsubishi, Chrysler, and Kia are just three popular auto manufacturers whose captive lending arms are known to help those with less than perfect credit.

Dealerships Helping Bad Credit Consumers

Although you may have to shop around more for a new vehicle if you have bad credit, if you make your payments on time you could also improve your credit score. Be prepared to pay a higher than average interest rate, depending on your credit. Find a car that's reliable and affordable, and enjoy the rush of owning a new vehicle.

If you’re ready to take the plunge and get a brand new car but worry your credit is going to hold you back, let CarsDirect lead the way. With our network of dealerships that specialize in unique credit situations, we want to help connect you to a local dealer that can get you the financing you need.

Our service is free of cost and obligation, and you can begin the process right now. All you need to do is submit our secure auto loan request form online, and we'll get right to work for you.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


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