How to Buy a Car While in Debt

By Kathryn Lively

One of the most frustrating experiences a person in financial straits must deal with is the necessity to spend more money when it's required. If you have had problems paying the bills lately, the last thing you want to do is add another one to a mounting pile. The need for a new car is perhaps one of the most important purchases you'll make regardless of your financial situation. A car gets you to work, gets the kids to school and the errands completed. Unless you live in an urban area with excellent mass transit, you'll need a car to get through the day.

So how can you buy one when you are in debt?

It's important, first and foremost, to assess the exact nature of your financial health. If you are behind on a few bills, it's much different than if you have had to file for bankruptcy. It is probably a good idea to consult with a financial professional to determine the available budget for a car. You likely won't be able to buy that BMW you have dreamed of owning, but what you get should have four wheels and a good enough engine to get you places.

Here are a few things to consider as you look for the economy car that fulfills life's necessities.

1) Consider buying used. Look for the best pre-owned car lots and dealers in your area and see what is available in your price range. Sometimes used car dealerships will have models with available warranties, which can come in handy in the event of an emergency. Or else, there are online and paper ads listing numerous "for sale by owner" options. You may not always find a stellar vehicle here - maybe many "as is" models for sale - so it's a good idea to search thoughtfully and for a long time.

2) Research financing options. If you go with a used dealer, you may be able to finance payments through the dealership. This likely means you will work through their bank, unless you can do otherwise, and agree to their terms. If you find the terms are reasonable this could work for you.

3) Hit up friends and relatives for assistance. That is, if you know somebody with a car they are thinking of selling, see if you can strike a good deal with somebody you trust.

Even if you are behind on bills and expenses, it is still possible to purchase a car to help alleviate your financial burdens. The car gets you to work to make money, so look for one capable of the task.