Can I trade my car if I have bad credit?
It’s like the answer to a lot of other questions, it depends.
It depends on how bad your credit is, what dealer you want to use, where you’ll look for financing, and the status of the existing loan on your trade vehicle.
Let’s take a look at how it might work.
I need a new car, and have a car to trade, but my credit is not good. How does it work?
In this case, it’s good that you have a vehicle to trade because it can be used as a down payment on a new vehicle loan — assuming you are not “upside down” and have some equity to use as trade credit.
Continue reading Trading Car With Bad Credit – Explained
How to buy a car from a private party, not from a dealer
When you buy a used from a private party individual instead of a dealer, things are a little different in the buying process. It’s a good idea to take extra caution especially with regards to exchanging money and title.
Since an individual seller can’t arrange financing for you if you need a loan, as a dealer can, you’ll be responsible for getting your own financing at a bank or credit union, or at an online finance source.
What’s different when you buy a car from an individual?
Advantages of private car purchase from an individual
• Possibly better purchase price than dealer retail price
• Individual sellers tend to be more flexible on price and negotiating
• Individual sellers tend to be more agreeable to buyer inspections and test drives
• No sales tax (in some states) on private car sales
Continue reading Buying Used Car from an Individual – Explained
Tips for Negotiating a Used Car Purchase
Buying and negotiating a car deal is one of those things in life that most people don’t look forward to — because it’s often stressful and, at best, unpleasant.
Car buyers know that they should always negotiate and haggle for the best price but nobody (except car dealers) do it every day and it’s not a skill that we all possess or get to practice very often.
Besides, the rules change from time to time.
First, let’s understand what we’re up against when buying a used car, either from a dealer or from an individual seller.
Continue reading How to Negotiate a Car Deal – Explained
This is a question that frequently comes up for those who are thinking of buying a new car.
Since this web site is about used cars, let’s get one answer out of the way immediately;
Leasing only applies to brand new cars, not used cars. There are some exceptions in that there are independent dealers in some large cities who lease used luxury cars.
But, hold on, that’s not the final answer.
Used car leasing
There is one way to lease a used car that most people are not aware of. It’s called by various names: lease takeover, lease assumption, lease trading, lease swapping, and taking over a lease.
Here’s how it works.
Continue reading Should I lease or buy a car?
How to choose the best used car for you and your budget
What car is best?
What car is most reliable?
Which car should I buy?
We see these questions frequently, usually from first-time buyers who have no experience in buying cars. They want to know which cars they should be considering, and which they should be avoiding, and why.
Of course, as might be expected, there is no single answer because different buyers have different needs and tastes, and there are many different cars that might work for them. However, we’ll try to provide some important suggestions that will make the decision much easier and less stressful.
Continue reading What is a good used car?
Can I Buy a New Car If I Still Owe Money On My Old Car?
This is a very common situation in which car buyers often find themselves.
The situation is that you want/need a new car but still have an outstanding loan on the car you intend to trade. And you know (or suspect) that the old car is not worth the amount you still owe.
What to do?
In the case where you find your old car is actually worth more than your current loan balance, there’s no problem. You trade the car, the dealer pays off your old loan, and the remainder of the trade value is applied as a down payment on your new car.
However, the more common situation is that you still owe more than the old car is worth. You’re “upside down.” The difference in the two values is called negative equity. Your options depend on the amount of the negative equity. The higher the negative equity, the fewer your options.
Continue reading How to Trade a Car with Negative Equity – Explained
What is an OBD code reader and how is it used?
An OBD (On-Board Diagnostic) scanner-reader is a good device to have for your own car or when shopping for a used vehicle.
When the “Check Engine” light comes on in a vehicle, the vehicle’s computer actually stores and saves the data about the problem that caused the light. The data is stored as a unique code that identifies the problem.
A Check Engine light indicates a problem that, if ignored, can cause one of more of the following issues:
- Serious engine damage
- Poor gas mileage
- Vehicle performance problems
- Expensive repair costs
- Emissions inspection failure
Continue reading Best OBD Code Reader-Scanners
Is it possible to buy a car for less than $1000?
Buying a good used car for $200, or $500, or even $1000 is not impossible but it requires extra time looking, checking, and driving to find the jewels among the junkers.
Most cars in this price range will be older and have high mileage, and lots of wear and potential problems.
Age and high mileage, however, is not necessarily a reason not to buy. Many cars with high mileage are in great condition and can last many more miles before finally falling apart.
Many problems with older used cars can be fixed relatively easily and inexpensively. Problems with engines and transmissions are the most expensive to repair. If the only problems are things like hoses, belts, wires, brakes, or electrical equipment, these can be fixed or replaced without great expense.
Continue reading Where can I buy a good cheap car for $200, or $500, or $1000?
Can a Dealer Take Back a Car After Papers Are Signed? Is it Legal?
The short answer to the above questions are Yes and Yes.
It’s a fairly common situation.
You buy a car from a dealer who arranges a loan, you sign the papers, possibly make a down payment and/or trade an old vehicle, and you drive away — thinking the deal is done.
You may have received the impression from the dealer that your loan was approved, which is presumably why you were allowed to drive away in your new car.
However, most dealers don’t provide or approve loans (except for buy-here-pay-here used car dealers). They use outside banks or finance companies. One of the papers you signed was a loan application, not a loan approval or grant.
Continue reading Dealer Wants Car Back – Legal or Not?