Getting a Car on Bad Credit? Here’s How to Get the Best Deal

A lot of us function on credit. A good number of Philly millennials get big student loans from the government just to get their college or university degrees. Couples often get their first houses through mortgages, which they will have to pay in the next 25 to 30 years. There are even professionals who get payday loans, or those short-term debts that they cross out when they receive their paychecks.

Aside from the ones mentioned above, there also creditors who focus on car loans.  Understandably, these car lenders conduct investigations to make sure that the borrower has the capacity to repay the loaned amount. One of the things that they look at is the borrower’s credit score. This figure tells the lenders how good of a credit manager a potential borrower is. The higher the score, the better the impression.

However, not everyone is blessed to have a good enough credit score. If you are reading this article, you are probably one of those who did not get so lucky with their ratings. But should this stop you from getting a car? Of course not! There are actually firms that help you get new and used cars with bad credit in Philadelphia. But before you actually go to them, there are psychological insights that you should bear in mind in order for you to secure the best deal.

Anchoring works, so take advantage of it.

In psychology, there is what we call as anchoring. This is a type of heuristic or mental shortcut that cause people’s valuations to just revolve around the value given to them initially. For example, a group of people is made to estimate the length of stick. One of them blurted out that it’s 20 inches long. Because of anchoring, the estimates of those that follow will be close to that number. If it so happened that the first person said that it’s 12 inches, then the next estimators are expected to give lower figures.

So, when you want to negotiate to get a car at the cheapest possible price, blurt out the lowest possible offer first. Just make sure though that this value is still reasonable. Ridiculously low offers almost always automatically get rejected. They also make you appear like you’re not a serious buyer.

The foot-in-the-door technique does wonders, open yourself to the possibility of using it.

The foot-in-the-door technique works by getting a person agree to a large request by letting them grant a smaller request first. To illustrate, homeowners who first agreed to have bills posted on their fences are more willing to have the same bills posted on their walls than those who were requested to have the bills posted on their walls immediately.

If you want to get the car at a lower price, find time to really talk to the car dealer. You really have to work your charms here. Before you make the request for a price cut, get them to agree first on a smaller but relevant request, such as having some unnecessary blings removed. This way, your discount request will a bit harder to refuse.

Slamming the door in the face doesn’t always hurt.

Social psychologists have been studying the door-in-the-face technique for a long time. InThis method involves making a very large request that a target will surely turn down first before making the actual request. This is easily seen in a person who agrees to lend someone $10 when the first asking amount was $100.

During car negotiations, don’t immediately ask for the discount amount that you really wish for. Start with something a bit higher, and then fall right back to it. The dealer by then will most likely agree.  

Will Hopstetter
Will is an automotive market enthusiast living in the United Kingdom. He holds a diverse background in automotive and enjoys utilizing that to produce insights into the inner workings of the industry.