Bad credit can be overcome when buying a car

1. Do not go car shopping until you know your credit score. You can get your score for free right here you can match your score to expected interest rates here, and you can calculate monthly payments here.

2. At the dealership, focus on the total price of the car, not the monthly payment because any monthly payment can be made to fit if you stretch the loan out long enough. The surest way to reduce interest costs is to shorten the time of the loan.

3. If your credit is bad, a substantial downpayment is your best friend. The average down payment is now around 11 percent, so going above that will help your chances of getting approved. Shoot for a payment less than 15 percent of your income.

4. The rates for bad credit car loans are not as bad as you think at first. On a per-day basis over the life of a loan, the difference between a prime loan and a subprime loan is less than a daily cup of coffee or candy bar.

The bottom line is to not overspend. The value of a car drops the most in the first two years, so take a careful look at used cars -- and let somebody else take the hit from the depreciation instead of you. You can find plenty of used car bargains.