After reading a post at The Frugal Feminista blog, on purchasing a car with a low credit score. I learned so much and created my strategy for searching for a new vehicle. It was perfect timing because my 2001 car had reached 198, 500+ miles and the engine light was on for two months. I knew it was time to start looking for a new vehicle. Despite the added expense, a safe and reliable vehicle is a necessity with my commute to work as well as transporting the kids different places. Last year my mechanic told me to eliminate any additional investment in the vehicle. My inspection was just a month away and I knew in order to pass it would require a huge expense. I purchased my vehicle 2005 with less than 40,000. After reviewing my title paperwork, I realized my purchase was the best deal, especially with a good credit score.
Things I Learned:
- Never use a leased vehicle to purchase next vehicle, the amount owed on the lease was added to the finance amount
- Buy a vehicle that offers high depreciation value
- Buy a vehicle that offers the best quality in terms of low maintenance
- Try to find a vehicle that is only 3 years old
Five Steps to Purchase with a low credit score
- Identified a car dealership that offered a wide selection of makes and models
- Searched online for cars that were under $18,000 and low mileage
- Searched for makes that offer higher trade-in values (i.e. Nissan, Toyota, and Honda)
- Consulted with the dealership on credit and details about my trade-in
- Prepared to add down payment
- Check the VIN number for the history of the vehicle
I always talk about the power of social media. Social media has afforded me the opportunity to connect with some phenomenal people and resources to educate myself on a number of topics.