10 October 2017
Expert Tips for Obtaining Car Finance With Bad Credit in 2017
If you want to go shopping and you have a poor credit score, you may be considering taking a high interest loan from a dealer. But you should not be quick to conclude that you cannot get other sources of car finance with bad credit. Some options may even save you a substantial amount of money over the term of the loan. It is important to get educated and do as much research as possible. The following tips will help you to get started.
Get Loan Pre-approval
You can get good car finance with bad credit if you look outside the established dealership network. Remember that most dealers want you to do it now and make instant buying decisions. Before you shop for a car, search for the best loan and get pre-approved by an independent lender. For instance, if you have a personal relationship with your bankers, and your account is in fairly good standing, you can get approved. But before you do this, use your smartphone to obtain multiple quotes from different auto lenders.
Bargain With the Dealer
After you have been pre-approved for your loan, you will enjoy a better negotiation with car dealers. Be aware that some dealers could try to lure you with a better rate, but you should only accept it if it is better than the loan for which you obtained approval. Most dealers will try to match the interest rate that you got approval for but they will make you pay more by increasing the length of the loan. So before you accept dealership financing, ensure that all the terms of the loan are similar.
Know Your Limits
Before you go to shop for your dream car, take time to understand the impact a car loan can have on your credit. Bear in mind that for your credit score to improve significantly, you must make consistent payments on or before the due date for your car loan every month. So you should establish a limit for your monthly loan repayment. You should have a loan term that suits your budget. Make use of a car loan calculator to know the amount that you can easily afford. Remember that after you have made regular payments on-time, you can request for loan refinancing and receive a better loan rate. Rent 2 Own Cars will taylor a payment plan to suit your budget over a term that suits you.
With these tips, you can begin the process of searching for the best car finance option that will enable you to buy an affordable car, even with bad credit. It is better to save a substantial amount of cash and make a down payment so your loan will not become a burden and cause further damage to your credit.