Tips For Buying a Used Car With Bad Credit in Kansas City

Posted Monday, Aug 30, 2021

Did you know there is no minimum score to get a car loan? But, if you’re in a situation where your credit isn’t stellar, don’t worry. We’ve got all the tips you need for buying a used car with bad credit in Kansas City.

When you are searching for a good car with low to no credit, your options are usually limited. Many lenders won’t fund loans or will with high terms. You will usually have better luck with a buy here pay here dealership.

However, since these types of lenders don’t solely rely on your credit score, you will need to bring some documentation to help prove you’re worth the risk of reward.

At City Wide, we have convenient options for vehicle financing and will often think outside the box to help you succeed in your loan application. Our dealership is unique in that we have creative ways to get you on the road.

Usually, you will need to prove you have been employed with your current employer for 6 months to a year and that you’re a resident of the United States. As well as the following:

Things to Bring

  • Driver’s License
  • Proof of Employment
  • Pay Stubs (30-60 Days)
  • Work History (About 3 Years)
  • Auto Insurance
  • Will you have a co-signer? If so, bring their information and/or them to the meeting.)
  • References (5-8 people – and let them know you’re using them!)

Bottom Line: Get your ducks in a row and organize your paperwork and resources ahead of time. This will speed up the loan evaluation process.

First Things First 

  1. Know what you want.

You know you want and need a car, but what kind do you want? Do you want something that has a big trunk, or will a hatchback do? Do you want a pickup so you can use it as a work vehicle?

Also, make sure you know how you want to use the vehicle, so you know how to narrow your search.

  1. Know what you need.

Do you need a vehicle that’s great on the highway or in the snow? Do you need something with 6 seats? Or how about something with plenty of cargo room?

Your needs will often outweigh your wants, so be sure that takes precedent when determining the kind of vehicle that will meet those needs. Make a list of the vehicles you want and see how they compare to the features you need.

  1. Know what you can afford.

Analyzing your budget is crucial to the success of paying your loan and reducing your debt. Make a list of all your income. Then make a list of all your expenses - bills, groceries, daycare, utilities, etc. Use these amounts to figure out what you have left that you can apply towards your car payment.

Make sure to give yourself a buffer though! You will also have fuel expenses, insurance, and regular maintenance costs.

Bottom line: Know what you can afford and stick to it.

Buyer Beware

When you are shopping for a new car, make sure you are checking if they are certified pre-owned and what kinds of warranties are offered. City Wide offers a unique Used Vehicle Protection Plan that includes:

  • A 12-month, 12,000-mile powertrain warranty that covers the engine block, heads, and intake/exhaust manifolds.
  • A limited power train transmission warranty that covers gear cases and housings.
  • Free oil changes for the life of the lease.
  • Oh, and your tags, titles, and taxes? Paid!

Aside from making sure, you’re finding a good quality car; you also want to make sure you are comfortable with your dealer. Establishing a trustworthy relationship is important as their financial experts will have access to your finances and will have conversations with you on the details.

A good dealership will help you with your financial situation no matter what kind of credit situation you are dealing with. They will be honest with you about where you’re at now versus where you could be in a few more months.

For example, at City Wide Motors, we don’t want you to be stuck in a worse situation. We want to help you get back on track even if you have:

  • Open Bankruptcy
  • High Debt Ratio
  • Tax Liens
  • Unpaid Medical Bills
  • No Credit Score
  • Recent Foreclosure
  • And More

Good dealers can also help you figure out how to fix things in your credit reports such as paying down or off a credit card or personal loan. They will go over loan options to cover the costs you will face if you don’t start repairing your credit.

Some of those costs include:

  • A smaller selection of vehicles
  • Higher interest rates
  • Higher down payments

Remember a higher down payment you can make the less you have to borrow. Whereas the shorter the loan, the higher the interest rate.

Bottom Line: You must think ahead and do what’s best for you and your finances - now and in the long run.

Credit Matters

As mentioned, there is no minimum credit score for an auto loan. However, the higher your score, the better. Dealerships and financial institutions will run your score from what is called the Big 3. These are the credit reporting bureaus of Experian, Equifax, and Transunion.

You can access your credit report for free annually and it will give you valuable information for what has affected your credit over the previous year and how your score compares. From this, you or your lender can figure out how to improve your credit and improve your loan terms.

A few things you can do to increase your credit immediately is:

  • You can pay more than the minimum on your debt payments.
  • Pay off the loans with the highest interest rates first.
  • Pay off smaller loans as soon as possible so the quantity of debt you have doesn’t overwhelm you.
  • Clean up any errors and file a dispute on anything that seems incorrect (there is a 30-day dispute process, so be prepared for that.)
  • Finally, consider consolidating your debt so you don’t have to juggle collection agencies, companies, etc.

Bottom Line: Pay as much as you can as soon as you can.