For many used car buyers with poor credit or no credit at all, getting a quality used vehicle can be a challenge. High-end used car dealerships usually aren't willing to give a loan to someone with bad credit, which usually means the only options are paying cash for a junker or getting a vehicle through on the spot financing.
We've covered the how and why of on the spot financing in previous articles, but a topic we haven't covered yet is how you actually choose your vehicle from an on the spot financing dealer.
So, how exactly do you get a car through on the spot financing? Well, it doesn't exactly work in the way you've grown accustomed to. You can't just go to a lot and select any car you desire then expect to drive it home. Their car selection process, in a nutshell, is more or less based on your credit score and how flexible or inflexible your monthly budget is. Although on the spot financing dealerships give you a second chance, they're not going to let you get a car you can't realistically afford; that would be irresponsible and it would hurt you in the long run. Their goal is to get you driving again with a car that doesn't break your budget.
So if your credit score is low and your budget isn't ideal, you probably won't end up with a brand new, 2011 Mustang; it might be a more experienced vehicle. But the good news is that your monthly payments would be lower in this situation. The more flexible your budget is and the higher your credit score, the nicer and newer your car will be. But don't forget, the nicer and newer your car, the higher your monthly payments will be as well.
On the spot financing dealers indeed want to help you. Which is why their processes for approval, financing and car selection can at times seem cumbersome, but it's only set up that way so they can help you to the best of their abilities. If they were to approve you for a 2011 Mustang, and you could only afford $100 a month for payments, you could get into some serious trouble, further your debt, and damage your credit even more. So keep this in mind when you go to an on the spot financing dealer. Be somewhat wary of the less-than-credible dealerships, and trust that the good dealerships know what they're doing and are doing everything in their power to help you.
You may not get your "dream car" the first time around, but by paying your bills on time and improving your credit score, you give yourself a much better opportunity to buy your dream car later on down the line when you work with an on the spot financing dealer.
