Fri. May 24th, 2024

Should You Buy a Car If You’re Already in Debt?

If you’re in over your head in debt, you’re not alone. So many of us get bombarded with life and then it happens. Job loss or illness occurs and you find yourself in more debt than you can see through. Then on top of it all, your car breaks. Now what? You can’t get a car loan from a dealership with your credit, or can you?

The thing is, creditors know that life happens and as long as you can prove that you’ve got a steady source of income, you may be able to get an affordable car loan.

Manage Your Credit

Your credit might not be as bad as you think. Sometimes, you can work out deals with creditors that are willing to meet you in your life place. If you can start making small payments, you’ll be surprised at the impact it’ll make on your credit report. Some creditors believe that harassment is the best way to get their money from their debtors.

On the other end of the spectrum, some creditors can be predatory to the vulnerable so beware. If you’re in a situation with a creditor and find yourself dealing with harassment, know that you have rights. You should call a local debt harassment attorney to see what you can do to stop the harassing letters and phone calls from disrupting your everyday life.


Just applying for loans can make a negative mark on your credit report. The solution to this issue is to look around before even applying. There are definitely some lenders out there that see high-risk borrowers as a way to up the interest rates on the loans. They know you need money quickly and may try to take advantage of the situation.

Even if you see that a lender is willing to give a loan to a high-risk debtor, don’t jump at the opportunity. Shop around for low-interest car loans before you make a decision. In some places, there are government-run lenders that offer help to consumers with low-income. These loans are often low interest and can help you buy a decent priced vehicle. There are reputable independent loan institutions as well, but be sure to keep your guard up and take your time as you do your research. If a loan offer seems too good to be true, it likely is.


Downpayments can make a huge difference when purchasing a car. If you include the value of a trade-in (if you have one) and a downpayment into the price of your vehicle the interest rate, taxes, and fees can be lowered. If you’re unable to get a downpayment, to consider selling your current vehicle. The trade-in value may be less than the market value of the vehicle and it may be worth selling the vehicle as a private sale. Then you could at least have some cash in your pocket when you begin the search.

High-Risk Car Lots

Having a vehicle that is always broken isn’t the best scenario especially if you have children. Be wary of car lots that sell their vehicles as-is. These vehicles have most likely been purchased at auction. When a vehicle goes to most auctions the only condition for it to be sold is that it is running. Shotty patchwork can be performed to mask larger issues and you may end up with another blemish on your credit as a result.

Having a running vehicle is essential for your quality of life. No one wants to be stuck taking public transportation, Ubering or Taxiing around. If you’re considering buying a vehicle online or from a dealership selling from an as-is vehicle know that the vehicle may have larger underlying issues that could cause you to fall into a money pit. If you can, wait and see if you can bring your credit score up to a fair rating.

Try to save money, if you can, for a sizeable downpayment, make amends with your creditors and search for a loan that is a sufficient amount with a low-interest rate. Remember, you’re going to be carrying your loved ones around in your vehicle so you need to be sure that it is reliable.

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