What to expect when buying a car with bad credit, part 3

Temper expectations
Before exploring any auto financing options with bad credit, make sure your expectations are realistic. "You're not going to get the 0 percent financing that's offered on the TV commercial," says Hoffman.

In fact, interest can be as high as 29 percent, Reed says, though "a guesstimate is normally around 20 percent," she adds.

If you have a low credit score, you'll likely be expected to put down a larger down payment, which is "designed to offset the risk the lender or dealer is taking by financing the consumer," Reed says.

While your credit score is a big determinant in how much of a down payment and interest you'll pay, there are other factors as well. If you've lived in your current home for a long period of time, that shows stability. Likewise, if you have a steady job and can show a stable employment history, you'll likely be seen as less of a risk.

References can also play a role. A list of people who can verify that you're responsible and likely to pay your debts can also lead to an extension of credit with better terms, Reed says.

Once you get approved, know that you can always refinance to better terms if your credit score improves -- something that's likely to happen as you make those car payments on time. "It is a good opportunity to be able to build better credit for the future," says Hoffman.