When you go shopping for a vehicle with a bad credit file, concentrate not only on the price of the vehicle but also on the finance charges as well. An automobile loan is the easiest loan to get. Most major car dealerships offer high-interest loans no matter what your past credit history is, as long as you make a large enough down payment and your employment is stable. The worse your credit, the more you pay in finance charges. The more your down payment, the lower your finance charges.
Car loans are among the easiest ways to reestablish new credit but they are a very expensive way.
Due to the high finance charges, you end up paying thousands more than the average consumer. The best advice is to shop around for finance charges and take your credit reports with you. If you do this when shopping around for a vehicle, you do not have to worry about the dealership asking you to sign a release to pull your credit file. Make friends with the finance manager. The finance manager has more authority than he wants you to believe.