Contrary to what most people think, it is completely possible to buy a car with bad credit. All it takes is knowing exactly what and how to approach viable sellers of the product. That being said, following are some ways on how to purchase a car even with bad credit history.

Buy Here Pay Here Auto Financing

Buy Here Pay Here or BHPH is currently one of the most popular methods when it comes to buying automobiles even with a bad record credit-wise. BHPH means that the individual could arrange a loan through the car dealership and buy the car through the same dealer. The loan is made through an in-house financing service of the dealer as opposed to using a bank. Hence, payment will be made through the same dealer, typically through weekly or bi-weekly payments. Part of the deal is that payment will be made personally although some car dealerships accept online payments.

For buy here pay here car dealers, look closely for lots that are open with low required down payments and those that operate with their own financing.

Using Indirect Auto Lenders

It’s also possible to buy a car with no credit with the help of indirect lenders. This type of lending institution lends to those who want to purchase an automobile with the agreement that they will be buying from a partner dealer. Since the dealer and lender are working together, borrowers will be exposed to less stringent requirements, allowing them to achieve a fairer price for their loan.

You want to look for indirect lenders who focus on working with customers with bad credit, offering second chance auto loans for subprime borrowers. 2nd chance auto loans are meant for people with bad credit who may have been rejected for a regular loan and need a second chance.

Opting for Used Cars for Sale

Of course, there’s always the possibility of simply buying used cars in the market. This allows the individual to forego the expensive price of a brand new model. Sometimes, used cars can cost as little as under $1000, making it possible to pay for a car outright with cash, so your credit record would not matter. You can purchase used cars directly from used car dealers. Better yet, check out local private parties who are selling. If you match up with the right individual, you could get a used car for a very good price, without needing to pay middleman dealers.

Finding a Consigner

Individuals can try approaching a friend or relative to back up their loan. This consigner will need to have a good credit history so that the lender will be more agreeable. Be careful though since the consigner will be the one responsible for the loan should the original borrower default. Hence, it’s important to convince them of consigning and following through with the loan.

Know the Limit

Buyers are advised to be aware of the market they want to purchase from. Find out exactly what is the roof-rate for buyers who have a bad credit history. Some car lenders might actually try to raise the interest rate and pretend that it’s the best they can do. Hence, it’s important to be aware of exactly how the situation stands and therefore be able to bargain.

Of course, those aren’t the only things to consider when buying a car despite bad credit. Although buyers will have to accept the fact that they are unlikely to find excellent terms, that doesn’t mean that they don’t have any options. Make sure to browse through several sellers and compare terms before trying to buy a car with bad credit.