It can be easier for a first timers with no credit history to get a car loan , than someone with bad credit history to be successful with a car loan, it is however easier when the bad credit report is recorded as you partner. Statistics have shown that banks and other lending institutions in the United Kingdom finance more than 80% of new car purchases as well as some 53% of used vehicles . With a bad credit, you need to consider your budget plan, down payments, and your credit rating in order to have an estimate of the interest rates you will pay on a new car.
Buy a pre-owned car
If you have a bad credit history as your partner , then you may consider buying a pre-owned car with low maintenance cost. Whether your car loan will be approved will depend on the car you buy. You need to be careful when choosing a pre-owned car because insurance policies will cost more for a new car than a pre-owned car, but many insurance companies don’t want to provide insurance cover for most pre-owned cars.
Buying a pre-owned car can be a secured option especially with bad credit rating because of its low maintenance cost. Buying your pre-owned car from a dealership lot is probably the best option of buying a car with a bad credit. Certified Pre-owned cars (CPOs) are abundantly available with dealership lots, and most of them have undergone extensive safety and maintenance inspections with documents to back up such inspections. You need to keep in mind that certified cars are more expensive than other types of cars but they come with great bargains at the long run.
Aside private lots, you may also consider buying a car from a private party such as your friend, family colleague or neighbor. One of the benefits of this option is that you can get an agreement to continue making insurance premium payments on such a car , especially if you can afford such agreements. A private party will also provide enough room for more negotiation and better price bargains.
Getting a loan fast with a bad credit history as your partner
If you can’t get an approved loan to purchase a new car, you can consider a number of other options to finance the purchase of a pre-owned car;
• Make use of a Sub-prime lending company. A sub-prime lending company provides quick and easy loan for less expensive automobiles , even with a moderately low credit rating.
• Save more money and make a down payment for the new or pre-owned car. This option will definitely reduce the amount of loan you can apply for and your lenders will probably consider lower loans than high risky ones.
• Find a co-signer to help you apply for a loan, as such will build some trust in your lender and facilitate the approval of your car loan within a short period of time. Make sure you have a review of your bad credit history before you seek a car loan.
