People who have low or poor credit scores may find financing car purchase to be a little bit challenging. This is because lenders are most likely to impose very high-interest rates for such people while dealers will also give them huge monthly repayments. For those who need to buy a car with non status finance, some of the following tips may be significant.
The first thing should be to request for your credit report and see what is making it bad. This is very important as banks and other lenders usually use this to rate loan applicants. In case there are some errors in it, you need to dispute them immediately. This is likely to lower the rates that you will be charged.
Another thing is to save more money for the deposit. The more down payments you make, the better. This will leave you needing very little to pay in monthly installments. Making large deposit also mean that you will only need to borrow a small amount which is likely to attract reduced interest rates compared to when you borrow large sums.
Getting a consignor may also help you get car finance even if your credit score is not all that impressive. This is because the consignor will always assume the outstanding balance should the borrower default for whichever reason. You should, however, avoid getting a guarantor unless you are sure that you will be able to repay the loan and in good time. This is because any late payments, repossession and default will affect your score as well as that of your guarantor.
Comparison of rates from different lenders is also a must. Despite the fact that lenders are always likely to impose very high-interest rates on you due to poor ratings, you still need to window shop for the affordable lenders. This way, you can always settle on one whose rates are within your budget.
Your non status finance means that, funds that can be loaned to you are limited. Due to this, you need avoid those that are above your budget and to look for a vehicle that is within the range that you have been lent. This will help you avoid financial constraints.
You should also negotiate the price of the vehicle. Once your car finance with bad credit has been approved, you need to use this to your advantage. Prospective customers with cash in place is always more attractive to dealers; it is, therefore, important to use this as an asset to get a good deal.