In this post I discuss Car Finance for Bad Credit. If you are like me then you probably have bad credit and cannot just pop into your local bank branch and get a loan.
We are considered too high a risk for mainstream lenders so we are left with no option but to seek finance from a bad credit or sub prime lender, or be really disciplined and save up the money (if only).
The good news is that you should be able to get car finance. However it will cost you more than it would do if you had a better credit score. That’s the price we pay for having bad credit unfortunately.
Things to look out for when applying for bad credit car finance
1. Does the lender allow you to pick your own car or do you have to select from one of their own?
2. How much interest does the lender charge on average?
3. Does the lender require a deposit and if so, how much?
4. Does the lender allow you to purchase from a dealership of your own choice?
5. What do other people think of the lender? Are there any reviews on the Internet?
6. Will you be able to afford the monthly payments, maintenance, insurance costs etc?
Can you get Car Finance with Bad Credit?
Yes in most cases you can get approved. I have a large number of defaults and late payments and I owe quite a lot of money to different people. However despite this, I was approved for my car finance.
I used a company called Moneybarn and they have been OK. I have even written a review about Moneybarn on this blog. So long as you know that you can afford the monthly payments and are honest about your bad credit, you should be accepted.