Very Bad Credit in Desperate Need of a New Car

by Amelia
(New York)

Question: I have very bad credit and am in desperate need of a new vehicle. I have had several personal tragedies in the past 10 years, and am just now starting to get my feet back on the ground.

My credit is completely shot. I consolidated debt, and the firm destroyed my credit even more! I have maintained employment. I currently work three jobs and am raising two little girls on my own. I need your help!!

Bad Credit? No Problem! Bad Credit Auto Loans

Answer: Hi Amelia,

Sorry to hear things have been rough for you. I have a few possible scenarios for you. Both are probably going to require some money down on your part. I would think on the low end that you will need $500, but the more the better.

First, A Buy Here Pay Here (BHPH) dealer may be the best option for you. Some BHPH dealers will sell a car with as little as $500 down, but as I mentioned above the more money down the better. With more money down you'll have more options as to what kind of car you can buy.

Second, if you do have a decent ($2000 or more) down payment, then a dealership other than a BHPH dealer could probably help. Especially one that works with Credit Acceptance.

Credit Acceptance guarantees credit approval, no matter how bad it is, but down payment is key to getting a nicer vehicle.

Fill out this quick loan application Any Credit Car Loans and your application will be forwarded to a dealership in your local area that specializes in bad credit car loans.

Third, take a look in your local paper and find fairly inexpensive cars for sale. You may be able to find a seller that would be sympathetic to your situation and will take your $500 as a down payment and allow you to make small payments to them.

Most sellers will not do this, but if you were to find an older couple that is not in need of the money, they may be willing to help you out.

Be sure if you do make a deal like this that you protect yourself. Get a receipt for the down payment and be sure you are listed on the title as the registered owner.

The seller will more than likely want to be listed as the lien holder, but they are just protecting themselves and that is okay until the balance is paid in full.

Keep track of all the payments that you make and if possible, have the seller write you a receipt each payment.

Some Key Points

Unless you have a rather large down payment you will not be able to be picky. Keep in mind that you "need" and don't simply "want" a car. Find one that is going to be as reliable as a cheap car is able to be and don't be too concerned with image and/or options.

If possible, see if a family member can help you out with some down payment, because the more the better. If you do work with a BHPH, take someone with you that knows cars to give the car a good once over mechanically.

Expect to pay high rates and finance for a short term. Pay on this vehicle well and you'll start to rebuild your credit slowly but surely. Next time you buy it shouldn't be quite as frustrating (you won't qualify for prime rates, but it will be a little bit easier).

Hope this helps and please don't hesitate to contact me if you have any further questions...Justin

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