Can You Buy A Truck With Bad Credit?

December 28, 2017 at 12:20 PM Leave a comment

Not many people understand how a poor credit rating affects them – until they try to make a major purchase. Much like wanting a drink of water after the well has run dry, if you are in the market for a new truck and you haven’t taken very good care of your credit history – or established a credit history at all – then you might be wondering if you can put yourself behind the wheel of a new truck before the New Year.

Financial forecasters are predicting that if you want to purchase or lease a new truck, the best time to do so is before the year ends. But for those who haven’t given their credit score much TLC, is it possible to buy a truck with bad credit while the December incentives are still in full swing? The answer is “maybe,” depending on what your credit score is and how much you have saved and are willing to put down.

How to take advantage of deals and incentives

If you want to take advantage of the trucks in Langley year-end deals being offered, then there are things that you can do to increase the likelihood that you can buy your dream truck. The first is to know what your credit rating is. The biggest mistake is to assume that if you don’t have any debt and haven’t used credit cards that you automatically have good credit. The sad reality is if you haven’t ever used a credit card and have always paid cash, you might have done yourself more harm than good.

Know your credit history

The hardest thing for a young person to accept is that if you didn’t need to borrow money, then you have put yourself into a “poor” credit history category. When it comes to financial institutional lending, they need to see your previous repayment habits in order to establish what they will be going forward. So, although you have been responsible and never needed to borrow money, you have also never proved that if you do get a loan that you will pay it back. It’s a catch-22: those who are responsible savers might get a hit on their credit score for doing so. So, before you head out to purchase a new truck, it is important to know what your credit rating is to know the amount you can borrow.

Figure out how much you can pay ahead of time

Secondly, make sure that you know what you can and should borrow limit-wise. If you set out to buy a new truck telling the dealership what you can pay per month, you are guaranteed to pay more for the truck over time than it is worth. Do your research and know the truck’s value instead of considering what you can afford monthly and then letting the overall price grow to accommodate what you want. Know what your limits are for buying a car – whether the lender will give you financing or not – or you will almost always end up paying more than you should.

Know what your trade-in is worth

If you have a trade-in, then make sure that you know what it is worth before you hit the dealership. It is nice to have a trade-in to use as a down payment. But do your research to know what you can get if you sell it privately to negotiate what the The Original Applewood Motors dealership will give you. If you just take the dealership’s word for what it is worth, then you will likely get a fraction of the cost and end up paying more than you have to to get the car you want.

Decide what is a “need” and what is a “want”

Don’t fall for gadgets and add-ons that you don’t need. Sure, an infotainment system and under-car lights sound awesome, but are they really necessary? Before you decide to finance the next couple of years of your life, determine what is a “need” and what is a “want,” so that you only get what you need and aren’t tempted into getting those things you don’t need but just sound cool.

If you don’t have awesome credit, there are almost always ways to get yourself behind the wheel of a new truck. But regardless of your credit history, you want to make smart decisions about your future and your truck purchase, so that you don’t dig yourself a bigger hole by taking out a loan that is more than you can handle, even if a finance company is willing to take a chance on you.

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