If you live in Los Angeles and have messed up your financial status in the past, you are likely wondering how to buy a car with bad credit in Los Angeles. Los Angeles is a car city; there's no doubt about it. If you want to get around town in a timely manner, you must have a car. The public transportation system in Los Angeles is terrible. Although there are planned improvements, they're not happening soon. Luckily, there are ways that you can, in fact, get a car in Los Angeles with bad credit and very little down payment.
- Get a copy of your credit report. If you've been turned down for credit within six months in Los Angeles or any city in the U.S., you can get a free credit report from the bureau that reported the negative credit rating. You can also get one free credit report per year. If you know what's on the credit report and go into the dealerships with the credit report in hand, you'll likely waste less time and get more people to listen to your situation.
- Visit small dealerships in Los Angeles that will give you credit themselves. These are getting fewer and more far between in the big city, but there are still some independent dealerships that will finance people with bad credit. When you pay the dealership each month, also request that they update your credit report to show your timely payments. Paying on a car can actually help to increase your credit score.
- Explain your situation to the dealership. If you've had a health crisis or simply lost your job, there are exceptions that can be made. Los Angeles has many cars that dealers and independent sellers want to unload. You are a willing customer, and there will be someone who will work with that bad credit.
Try to get pre-qualified for a car loan before you walk into a dealership. If you already are approved, then you take care of the financial part of the problem. This will give you more power at a dealership. If you aren't desperate for them to give you credit, you have more power over talking the price down on a car and in picking the car of your dreams or within your budget.
- Try sub-par lenders if you cannot get a loan by other means and must get a loan to have a car. Westlake Financial Services provides loans to people in Los Angeles with bad credit. Interest rates are higher, and you may be talked into unfair terms through some subprime lenders. However, make sure that you have someone who understands financing along with you before getting yourself into any contract. Weight the pros and cons of such a contract. While I don't recommend subprime lenders to anyone as an ideal choice, you have to do what's right for you in getting a car.
- Try financing a car that's for sale directly with the owner. If a friend or colleague has a car for sale, ask about making payments on the car. This is tricky, as friendships can be hurt if you miss payments or feel that you paid too much for a car. However, making payments independently can be better than going through a shady bank. Make sure to put any agreement that you have in writing. Always make payments on time in order to recover your credit.