This entry was posted on Tuesday, September 1st, 2009 at 1:56 pm and is filed under Q&A Auto Financing with Bad Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
I Need To Get A New Car And I Have Bad Credit. I Would Like To Get Something Brand New…?
There is probably a reason you have bad credit. Maybe you should look at used cars after you have saved some money. Take a good financial planning class. Credit for people with bad credit is usually a rip-off and you will probably lose the car after a year or two.
As they say, the most expensive scent on earth is new car smell. If you continue to buy brand new, instead of fitting your budget and transportation needs, your credit will continue to be bad.
You CAN get a decent car loan, even with bad credit. I’ve done it, but you’ll have to look around. That’s one of the BIG mistakes people make…just taking the first offer that’s given to them when they go to the dealer. Be smarter than that.
WARNING: DON’T GO TO BUY A CAR WITHOUT HAVING THE LOAN FIRST. The auto dealers will eat you alive and give you a crappy rate. Shop around with lenders who specialize in bad credit car loans. It’s a better option, you don’t have to take what they’re offering if you don’t want it, and it’s better than dealing with the car dealer’s people.
There are usually some nationally based car loan companies who specialize in bad credit car loans who advertise on the page linked below…http://www.axalda.info/bad-credit-car-lo…
don’t know of any online lenders. if you have a down payment (20% for bad credit usually) you could get approved.
You can get bad credit car loan as either secured or unsecured. Secured bad credit car loan comes with the threefold benefit of low interest rate and increased repayment term and huge principal. But this type of loan requires you to offer your property as collateral. Your home is at risk if you fail to pay the monthly installment. But this is not permanent and holds true only if you miss or delay your repayment.
This type of risk is absent in an unsecured bad credit car loan. However, if you miss any payment, your lender can file a legal case against you. As you do not offer any collateral, you have to pay higher rate of interest.
When you compare both the types of bad credit car loans, the secured bad credit car loan is more flexible as regards the terms and conditions. The unsecured is more rigid. Hence if you are certain about making regular payments, secured option is the best.
If you have bad credit - it really is bearable. But there are lenders that have heart. You have to explain in writing and get a proof for the reason why you have a bad credit right now. If it’s due to illness that cause you lose your job, then this might be considered. you have to ask around for good hearted lender and you have to be honest, because they know if someone is lying or telling the truth. Then, because they are risking their money if they lend you, expect a very high interest rate. (this could get you in a deeper loan problem in the future if you have to default because the monthly will be HUGE). Sometimes, the money you could borrow is double the amount of the car after payment. So, next time, if you have some credit to pay, pay it on time. And don’t borrow money that too big to handle.