Tips About Purchasing Used Cars in El Paso to Rebuild Credit

Aug 23, 2015

You have to be careful, when you are looking at used cars for sale in El Paso, TX, and you have poor credit. There are some El Paso used car dealerships who say they can help rebuild your credit, but it comes at a price. While you are shopping different car dealers, take the time to ask questions and verify that you understand exactly what you are getting yourself into. In some cases, the monthly payments are extremely high and place an even greater financial burden upon you, making it difficult to make ends meet. The following are some warning signs and tips to help avoid a financial nightmare.

Warning Number 1:

Some dealers may focus on lending you money and giving you a vehicle they select for you to drive. Their sales pitch is something like this: “It’s not the vehicle that matters, but the fact we are lending you money. By paying regular monthly payments until the loan is paid off, it will rebuild your credit.” This should be a red flag, because the amount of money they lend you, along with a high interest rate, often results in paying about four or five times more than the vehicle is worth. Also be wary of dealers offering to issue you a credit card and charge the cost of the vehicle to the card.

Warning Number 2:

Before signing any loan agreement, read through the fine print. The fine print is where you find hidden gems of information like prepayment penalties and early pay-off penalties. If the dealer is rushing you to sign and says there is nothing to worry about, chances are there are some hidden fees in the fine print. If you notice any penalties or added fees for paying off your loan earlier, an excessive interest rate, or something to the effect that you still have to pay the full amount of interest, walk away.

Tip Number 3:

Work with reputable car dealerships when shopping for a car. If you stick with brand names, like Kia, you have a better opportunity of securing the vehicle you want at a payment you can afford. In addition, be upfront and honest with the sales associate and dealership. Let them know you have so-so credit and are looking to get a used vehicle as a means to help rebuild your credit. Many reputable dealers in El Paso have pre-existing lender relationships in place and know exactly which ones specialize in loans for people with poor credit.

Tip Number 4:

Remember to include car insurance in your monthly payment budget. It is easy to forget about car insurance until after signing the loan agreement. Contact local insurance agents to get a quote for insurance, once you have a particular vehicle in mind, before applying for financing. Most insurance agents are able to give you an estimate right over the phone. Additionally, the car dealership can supply an estimated monthly car payment amount without having to apply for financing, so long as you were honest about your credit. Once you have both figures, add them together and verify that they fit into your monthly budget.

For further assistance and help with finding a used vehicle to help rebuild your credit, please feel free to visit Integrity Kia in El Paso, or call 915-856-2982 now.