It Is Possible To Find Auto Loans With Bad Credit
Regardless of a person's credit rating, chances are at some point they will need a car to get to work or for general transportation. With exceptionally bad credit, auto loans may seem impossible, but there are auto loans with bad credit available, but you may not find the car you really want. While many dealers offering auto loans with bad credit will let you choose an available vehicle, the choice may be somewhat limited.
As recently as five years ago when a person was in desperate need of a car, they could find a dealer working with a loan company to offer auto loans with bad credit, but the cars being offered were generally close to 10 years old and the price was considerably above the blue book price. Many also required between 10 and 20 percent down. Today, many companies offer their own financing of auto loans with bad credit with buy here, pay here plans.
A few even offer cars that are about five years old and many even offer warranty plans for free of a small charge that is added to the price of the car. As a convenience to their customers they may also be willing to defer the down payment, giving the buyer up to two or three weeks to make the down payment before payment on the auto loans with bad credit begin.
Interest Rates And Late Fees Inflate Price
The companies that offer auto loans with bad credit typically have a higher interest rate than most used car lots, but when someone is in desperate need of a vehicle, the high interest rate may seem like an inconvenience rather than a warning that they are going to pay much more than the vehicle is worth.
Most banks and traditional loan companies will not touch auto loans with bad credit, leaving the consumer with a low credit score little choice but to deal with the higher rates. Many times, late fees for payments are between $10 and $20, per week or two weeks, depending on the payment plan. The payment due date is typically the person's payday, with one extra day to give them time to get to the office and make the payment.
Person's looking to buy a brand new car may be hard pressed to find auto loans with bad credit. Although there are some dealers working on clearing an excess of inventory from their lot, or last year's models may be able to work with non-traditional lenders to help buyers obtain auto loans with bad credit to purchase a never owned vehicle.
