In carrying higher interest rates for non-prime loans, bad credit car loans are not difficult to achieve. Even people who have filed for bankruptcy can find a decent offer on auto financing if you shop around. No matter if you buy new or used.
Bad Credit Car Loans – New Purchase
For peace of mind, safety and driving without complications, there is nothing like buying a new car. When you buy new, you have more control over optional features if you buy a used car. You will also receive a new warranty lasts much longer than the extended warranty can be purchased for used cars.
The danger in buying new is “upside down” on bad car credit loan. One way around this is to have a decent signal-to 30% or better. Another way is to choose a vehicle with high resale value. This will help curb the depreciation.
Depreciation is the difference between the MSRP (MSRP) when the vehicle was purchased and what is worth now. A $ 25,000 car will depreciate an average of 15% the first year and between 7% and 10% annually over the next two years. Cars with a prestigious nameplate hold their value longer and are less likely to depreciate more quickly than the car loan.
Bad Credit Car Loans – Buy Used
Buying a used car makes sense if you want to keep your monthly payments affordable. Since used cars depreciate more slowly than new cars, they do best short-term guarantee for lenders. However, some lenders reduce the loan term and increase the rate of bad credit car loans.
When you buy used, you have the opportunity to obtain a more expensive model than they could afford if he bought it new. For the same amount, which could have a new Suzuki, one of two years old, Kizashi, or a six-year-old Chevrolet.
Get a used car from a private will be cheaper to buy the same car from a dealership. Here are some questions you want to ask the seller:
– How long have you owned the vehicle?
– Has the vehicle in an accident or paint?
– When is the next state inspection and emissions test?
– How often has the oil and filter changed?
– Why is selling the vehicle?
First Things First
With the ease of the application process online at sites like buying a car, you can pre-qualify for a bad credit car loan before buying a vehicle. Make sure to borrow enough money to cover all costs associated with buying, as the dealer preparation costs, if you are purchasing new license plates, title and registration fees