If your credit score is very low and your APR is very high, then buying any car will be very expensive.
Can you defer your car purchase? Can you "get by" with your current car? Can you consider public
transportation? Can you share a ride to work? Will someone loan a car to you? Can you take the
time to improve your credit score and save a larger down payment?
If you must purchase a vehicle, here are two choices:
1) Purchase a vehicle in a private sale for less than $1,000 or less than $2,000. A private
sale will require cash. Can you arrange for a loan from friends or family? Can you find other
sources of cash? Do you have something to sell? Avoid borrowing money at high rates of
interest. In very rare circumstances, you may be able to talk the seller into a $1,000 down and
the rest over time.
2) Purchase a similar vehicle at a dealership, because the dealership can arrange financing.
But beware, the dealership will probably have a mark-up of $2,000 or more and will likely require
a $1,000 down payment anyway.
Avoid over paying for a car just because the dealership can arrange financing. Avoid putting yourself
in a worse position.
Why pay $4,000 or more for a car from a dealership and incur high interest charges, when
you can buy a similar vehicle from a private party for $2,000 or possibly less?
If you have poor credit and are struggling to come up with $1,000 to $2,000 for a car, how will you pay
for liability insurance, gas, maintenance, repairs, etc.?
These are tough choices. Choose wisely.
Of course your safety is most important!
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