Financing a Car With Bad Credit
Nobody wants to be stuck with an unreliable vehicle in this day and age, and with the government having brought in new regulations and prices relating to the cost of vehicle tax on many vehicles, a lot of people may be considering changing their cars either because they do not want to be hit with the higher tax charges or because they simply need to get a more reliable vehicle. Many people rely on their cars to ferry their kids around, get to and from work, and even as part of their work, and the last thing any driver wants is to have a car that is unreliable or worse still unsafe.
There are a number of options available to those that are looking to finance a new or newer vehicle, and most of us do have to rely on finance to purchase a new vehicle as most do not have huge sums of money stashed away, particularly in the current financial climate. Amongst the options available for financing a vehicle purchase are bank loans, secured loans, Hire Purchase or HP, Personal Contract Purchase or PCP, and dealership finance. For those with good credit most options are available, which means plenty of choice and the chance to get a really good deal on vehicle purchase. However, the situation can be very different for those with damaged credit.
If you have damaged credit you may find that many of these options are not available to you. Often, the only options available to those with damaged credit are dealership finance or a loan targeted specifically at those with damaged credit. There are a number of vehicle dealerships that target those with damaged credit. However, the APR charged on the finance from these dealerships can be extortionate, which means that your repayments could be very costly. In addition to this taking on dealership finance from these place that target people with bad credit means that you will have a very limited choice of vehicles, as you will only be able to choose from the vehicles from that dealership.
If you have looked into dealership finance and have found that the rate of interest on the finance is too high or that you have not got a wide enough choice of vehicles then another option is to take out a loan from a lender that offers finance to those with damaged credit. There are a couple of advantages to considering a bad credit loan to purchase your vehicle rather than opting for dealership finance. Firstly the APR may be far lower than with dealership finance, which could save you money on your repayments. Secondly, getting a loan means that you can purchase your vehicle through any dealership, which means that you will not be limited when it comes to your choice of cars.
You will find a number of lenders that offer loans to those with bad credit, and depending on your circumstances and the extent of damage to your credit you could be eligible for a secured or an unsecured loan. Make sure that you compare the interest rates and other terms on loans from a number of lenders that offer finance to those with damaged credit, as this will help to ensure that you get the best and more affordable loan package for your needs.