Bad credit car dealers in Ohio?

Wednesday, January 7th, 2009 at 00:28

Anni asked:

Anyone here know a car dealership/website that deals with bad credit and can get you a car in Ohio?

Thanks!

Reply:

Just about all dealers will have financing sources to handle 'challenged' credit. Your situation will dictate how many banks may approve you. Here are a few things to know before going to the dealer.

First, go online to order you credit report and pay the additional fee to get your 'score'. Experian charges $14.95 but it will be worth it as it provides valuable information; Equifax and Trans Union are about the same price but you only need one. Look through the report for the negative credit reporting and prepare an explaination...not an excuse...an explaination for each of the negative credit lines.

Next, divide your monthly income in half. Total your monthly payments for mortgage, cc bils, loans (except a car loan on the trade), etc. (things on a credit report). Subtract this from half your monthly income. This is the maximum payment a bank will approve you for. Banks use a 'debt to income' ratio and 'bad' credit banks like to stay between 40-50%...including your new car payment.

Next, gather proof of income (check stubs) and proof of residence (utility bill).

The factors the bank will consider in the approval are: credit score, time on job and at residence (stability), explaination of negative credit (again...no excuses) and debt to income ratio.

Now, contact a dealer (look in the paper for 'bad credit, no credit, no problem' but stay away from the 'phone application'). Contact the dealership as they will have a 'special finance' manager. Talk to that person and give them all of the above information. Credit score, debt to income ("based on my income, I can afford a payment of $xyz and still be at 50% debt to income"), time at job/residence. All of these factor into which banks the dealer will look to for Propecia whithout prescription an approval. Other (minor) factors will be comparable debt (have you had a car loan before) and whether you are a homeowner.

Unless your credit score is less than 550, I would stick to the franchise dealers. They will have better quality cars and more financing sources than 'independent' dealers. Talk with a few of them (but have your information...if you do not they can not help you on the phone!) but only allow them to start the credit process after you have decided you 1) like the person you are dealing with and 2) they have several cars in which to choose.

Most dealers want to help...they're in the business of selling cars and understand credit 'hits' can happen to all of us...but DO NOT let every dealer in town pull your credit. It will hurt you. Also, give them as much information as you can about your situtation...it only helps them to determine the banks that will approve you.

Hope this has helped. Good luck.

Finance your car here onsite if you need help buying one of these beauties :)