FAQ: How to Buy a New Vehicle with Bad Credit

Lancaster Kia is Here to Help Answer Your Bad Credit Auto Loan Questions

Financing a new car or SUV is daunting, but it can be even more so if you have less than perfect credit. Fortunately there are ways to bring home a new vehicle even if your credit isn’t perfect, and Lancaster Kia is here to help you understand some best practices that will make you more likely to be approved.

Should I Bring a Down Payment?

Yes. Bringing a down payment has a number of benefits that can help those with bad credit secure a car loan.

A down payment shows that you’re committed, and it lowers the monthly payment to something that’s more affordable. Getting a new car loan with bad credit is all about making the bank feel comfortable about working with you, so reducing the monthly payment amount while showing your ability to save money is an excellent selling point.

Do I Need Proof of Income?

Yes. Proof of income is always helpful when securing any type of loan. If you have no credit or bad credit, but you’ve recently earned a pay raise or gotten a new job that offers you more income than you’ve had previously, providing proof of income can help show the bank that despite past credit mistakes, you’re currently in an excellent position to deliver on your promise to repay.

Should I be Shopping New or Used Inventory?

Generally speaking, it doesn’t matter whether you’re looking at new or used inventory. In some cases the bank may not be willing to lend you enough for a brand new model outright, however you would not be prohibited from buying a new vehicle if you could bridge the gap with a trade-in or down payment.

Visit Us for More Information!

If you still have questions about bad credit financing, visit our dealership today! Our financial professionals can help with your unique situation to give you a clear picture of what you can expect when looking to purchase a vehicle with imperfect credit.

;