Can You Buy a Car With Bad Credit & No Job?

It is possible to buy a car with bad credit and no job, but you might find that some dealerships are unwilling to work with you, and that others will require a significant down payment.

Types

If you have bad credit and no job, you will most likely be offered a variety of subprime loans. Subprime loans are intended for consumers who pose significant risks to finance companies.

Features

The financing available if you have bad credit and no job will be at a very high interest rate and require a significant down payment. Some lenders offer guaranteed financing regardless of credit history, but you must be able to prove income from disability or Social Security.

Benefits

A guaranteed-financing loan can help you get on the road if you need a vehicle. A subprime auto loan can also help improve your credit if you pay off your obligation.

Warning

If you do not have a job, be sure to consider how you will repay your debt. If you have a hard time covering your financial obligations on disability or Social Security payments, make sure you will be able to make your monthly car payment.

Expert Insight

If you have bad credit and are unemployed, it is probably not the right time to buy a car. But if you are going to buy one, be sure to use tools such as the Kelley Blue Book to determine a fair selling price for a used vehicle.

References

• Edmunds.com: Tips for Subprime Borrowers
• Kelley Blue Book