We Americans are a tough lot. We don’t give up easily. So, why lose against bad credit without a fight? You can obtain a new auto loan without worrying about your bad credit history. Don’t think is a midsummer’s night dream. It is a possibility. And, to make it a reality, I can help you.
Let’s us learn everything about buying a new car with bad credit history. After reading this auto financing manual, it will become easy for you to obtain your favorite new car. So, let’s start.
The Market is in your Favor
Bad credit history is difficult to tackle but it is not impossible to defeat it. It is definitely a challenge but don’t consider it a curse. For coming out victorious in the car financing process, you must have a positive attitude. Also, remember that the market is opening up for sub-prime credit buyers. In Q4 2013, the market share for new vehicle loans in the non-prime, sub-prime and deep sub-prime credit tiers increased to 34.1 percent of all new loans, up from 32.8 percent in Q4 2012. This means consumers are getting access to several financing options with improved rates.
Create a Favorable Situation for yourself
Now you know that market situation is favorable for bad credit car buyers, you must take steps for making it even more promising for yourself. And for that, you must plan for getting easy approval on bad credit new car loan financing.
Step 1 – Plan your Car Budget
It is very important to create a car budget for buying a new automobile. It will help you in staying away from expensive car models. If you make a budget, you will avoid costly loan deals and reduce the chances of ruining your credit score.
Making a car budget is simple. List down all your incomes & expenses and calculate your savings for every month. After that, ascertain the amount of savings that you can spend each month on the car loan payment.
Step 2 – Review your Credit Report
Credit reporting agencies commit mistakes while providing credit reports. So, it is important that you check your credit report for errors. If you find any unwarranted transactions in your report, you must inform it to the respective credit agency and get it removed. It will help you in improving your credit score.
You must also check your credit score before applying with a new car loan lender because your credit score may have improved over time and you may be unaware of it.
Step 3 – Solve the Dilemma of Down Payment
To pay or not to pay the down payment – that is the question. Down payment is a really confusing aspect of new car loans. It reduces the loan amount and saves you from spending your money on interest amount. But, it doesn’t make sense to make down payment by taking a high rate personal loan. So, what should you do about down payment? Well, the answer is different for every car buyer.
If you have an old car, you can sell it and use the money as down payment. You can even trade the car and ask the dealer to deduct the old car’s value from the total cost of the new car. Another way to put money down is to use rebates and cash incentives of the new car as down payment.
Step 4 – Seek help of a Sub-prime Lender
When you have bad credit history, it is important to take help of a sub-prime car lender. It is because they have the accurate idea of dealing with your situation. Also, they will be able to understand your situation in a better way and provide affordable loan solutions for buying a new car.
Don’t even commit the mistake of going to a bank because traditional lending agencies like banks consider bad credit score as a red flag. They won’t risk their money on someone with a sub-prime credit history. So, it is ideal to apply with an online sub-prime lender like www.cardestination.com as you will have the benefit of completing your car financing process even without leaving your home.
So, next time you dream of buying a new car, make it a reality with this car financing manual. And, do remember to take help of a reputed sub-prime auto lender.