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Old 09-01-2009, 12:45 PM
babydoll86
 
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Default when purchasing a car, what does the paperwork consists of?

I'm trying to purchase a used car from a dealership who will work with me, despite my credit history. They told me that as long as I have income coming in( I have to jobs totaling $1900-$2000 monthly), a valid license, and at least one utility bill (phone bill), then I should be fine. The only concern is that this is actually my first time ever sitting down with a dealer and attempting to buy a car on my own. I do have enough money for a large down payment, which is about $2000 maximum or less. I was told about paperwork and the bank regarding this process.
What does the paperwork ask for or what are some info they're looking for? Even if i had low income, would they still work with me depending on the cars available? I will like to know before I expect something bad. By the way, I'm looking for a 2004 or 2005 used vehicle.
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Old 09-01-2009, 01:02 PM
wayfaroutthere
 
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You may want to check with your bank for another offer. Just because the car company says your credit is bad doesn't mean that you can't get a loan elsewhere--they may be hoping you don't try. Watch the interest rate too. With good credit, you should be able to get a rate between 8 and 9 percent. If they are charging you 15%--would you put a car on your credit card?

If they don't give you a rate under 11%, forget the whole deal. Take your $2000, buy a car that runs or fix the one you have, and throw $250 a month (your car payment--so it shouldn't be a problem) into a shoebox/account for your car. Then you have money to fix it when it breaks down, and you'll be saving for a down payment for when your credit gets better. It is almost always cheaper to keep throwing money at fixing a clunker than to buy something slightly used (and new is rarely a good deal money-wise).

Buy a better used car or a new car when you can afford the luxury, and not before. You don't want to make your credit problems worse by taking on a debt at the wrong time at an interest rate you can't afford.

(The paperwork is simple, but they will ask where you work and live, and will run your credit history.)
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