While there are steps you can take to improve your chances for approval, there is something you might not have considered. WHEN you shop for a vehicle can also affect how likely your loan application will be approved.
When Should I Buy A Car?
Shopping for a vehicle with bad credit can be a frustrating and even embarrassing experience. However, if you’ve decided that “now” is the right time to buy a car it is important that you know when to shop.
Weekdays
It might be more convenient to browse dealerships and BHPY lots on the weekend, but this is a time you’ll want to avoid. Other potential buyers, with higher credit scores, usually end up with the best deals. Dealerships are also less likely to approve your loan, when they already have customers applying with a lower default risk.
Auto dealers are often trying to meet end of the month sales totals, which could increase your chances of driving off in a new vehicle.
Labor Day
This is one of the best times to buy a car, even if your credit is less than perfect. While you probably won’t be approved for a brand-new vehicle, you could drive off in last year’s model.
Labor Day is typically when the new model year vehicles arrive, and dealerships need to make space for them. Your subpar credit might exclude you from some of the low financing deals, but you could have a better chance of being approved.
Christmas and New Year’s
According to Edmunds, vehicles are often discounted up to 6.1 percent in December. This can mean significant savings for consumers. Dealerships are hoping to meet their year end sales goals, along with clearing out older models.
You can also find great deals during Black Friday, but your credit might prevent you from buying a new model.
How to Buy the Right Car
Now that you when to buy an automobile, how do you know it’s the right one? To ensure that you aren’t “talked” into the wrong car by an overeager salesperson, here are a few tips.
- Have a set budget
Do Not go into a car dealership without knowing exactly what you can afford. The last thing you want is to have a repossession on your credit report due to an inability to make the monthly payments.
Most financial experts recommend spending no more than 25 percent of their average monthly income.
This should include all costs associated with the vehicle including payments, maintenance, gas and insurance. Edumonds.com or Kelley Blue Book can help you determine an estimate.
- Narrow down your choices
Research any makes and models you are interested in, before heading to the car lot. Not only will this significantly shorten your shopping time, it will help prevent you from choosing the wrong vehicle. Try to pick models that are listed at least 5 percent below your budget. This way you will still be able to afford upkeep, insurance and gas.
- Know the vehicle’s price
This can be especially important at Buy Here Pay Here lots. There are some unscrupulous ones that raise the sticker price before placing it “on sale”. Kelley Blue Book will be an invaluable resource in helping to ensure that you get the best deal on the automobile.
- Pay attention to all the advertised deals
Whether your car shopping on Labor Day or at the end of the year, pay attention to the deals that advertised. Car lots are competing for your business, often even if you have bad credit.
- Don’t rush the test drive
If the dealership won’t allow a test drive, Do Not accept any offers. Chances are the vehicle is a “lemon”. You want to take your time on the test drive. It is important that you get a feel for how the vehicle handles and rides. Play with the various functions, and make sure that this is something that you’ll want to drive every day.
Besides, some problems don’t become apparent until the engine has a chance to warm-up.
- Negotiate the best deal
Don’t be afraid to negotiate, even if you have a low FICO score. There is always the chance that you can get a better deal on the vehicle. If another BHPH dealership has a similar model at a better price or offers a lower interest rate, see if you can’t get the same deal on the vehicle you really want.
Buy with Confidence
Along with having the necessary paperwork, down payment and possibly a co-signer, you also know the best time to buy an automobile. You might have to wait a little longer than anticipated to find the best deal. It will also require some research and financial planning.
In the end you will be glad that you did, when you are finally driving a vehicle that fits your needs and budget.