How to Get a Bad Credit Car Loan That is GOOD Value!
Posted on February 17, 2010, under Car Financing.
Cars are an essential part of life – in most cities of the world, public transport will only get you so far! Unfortunately, there are many car dealers that know how desperate people can become when they don’t have a car.. If you have bad credit, and you car loan options are limited, you will often find dealers offering you bottom-of-the-barrel bad credit car loans. They are incredibly expensive, come with ‘mandatory’ extra options, and generally make you feel powerless. There are ways to get a bad credit car loans that are actually good value, though – we explore some of the tips and tricks.
1. Work out your finance before you choose a car
We know, choosing the car is the exciting part … sifting through classified ads to find a great deal on a car that’s in great shape. However, if you have bad credit, it is always advisable to work out your finance before you select your vehicle. When you have a car in mind, getting the finance becomes a race against time, and it often seems that any old loan will do. Don’t tease yourself by looking at cars before you’ve got your used car loan!
2. Use a car finance broker
There are plenty of places that offer you car loans, but the best way to get a cheap car loan (especially with bad credit) is to go to a broker. You can compare the options easily, without entering your details at multiple sites. You don’t have to suffer through the rejections that are inevitable when you try to get a bad credit car loan from a standard lender. Best of all, you can be assured that you’re getting a good deal.
3. Buy used, not new
New cars are for a very specific population segment, who has the money to afford them, but not the time to upkeep them. When you buy a new car, you are paying a premium price just for the privilege of driving a vehicle that nobody else has. This bumps the price up immensely (depreciation on new cars is often around 40% in the first year). There are thousands of great value used cars about, and with a bad credit car loan you can buy a car that is up to 10 years old.
