Commuting to work, dropping off the kids at daycare or school, or even just making a grocery run for milk and bread can become difficult, dangerous, or even impossible when your car refuses to cooperate. Sadly, dealing with an unreliable car can even cause you to lose the income you depend on or prevent you finding another job, if you lose your current one due to transportation issues. Often, however, families who find themselves stuck with an unreliable car are also experiencing credit or income issues that prevent them from obtaining the car loan they need to get a more reliable vehicle. Happily, however, there are a few ways to improve your vehicle situation without the use of a standard vehicle loan.
Making an arrangement with a private owner
Older vehicles or cosmetically challenged ones can be difficult for buyers to finance, even when they have sufficient credit scores. This can make it difficult for the owners of these vehicles to find a buyer for them, even when they still offer dependable transportation. Consider searching your local area for these types of vehicles and working out an arrangement where you can make a small down payment and small weekly or monthly payments until the car is paid for in full before the owner transfers the title to you. Be aware that the owner will probably want to see proof of sufficient income and valid insurance before considering this type of arrangement.
Asking a relative to purchase a vehicle for you
Another way to get a better car without taking out a standard vehicle loan is to ask your parents or another close relative to fund the purchase for a dependable, but inexpensive vehicle for you. To do this without risking damage to the relationship, make sure that you make a written, signed agreement with them that covers how the car will be purchased and titled until you have paid for it in full. In addition, the agreement should fully specify the amount and date of the payments to be made and clearly state who will insure and maintain the vehicle, as well as how any taxes on the car will be handled.
Utilizing a buy here/pay here car lot
A buy here/pay here car lot is often the easiest way to obtain a dependable vehicle when funds are scarce and getting a vehicle loan is not possible. In most cases, this type of arrangement will allow you to choose from a large selection of quality vehicles on their lot and help you set up weekly or monthly recurring payments to pay for the one you choose. In most cases, the car will remain titled to the car dealer until you have paid for it in full, with you being responsible for insurance and licensing fees. Some of these car lots may ask for a small down payment or take your current vehicle in as a trade-in.