Cort Vehicle Contracts
Getting Brand New car with poor credit
Owning a car is everyone’s dream, as we all seem to be born with a passion for cars. If your dream is to own a brand new car, auto loans are usually the best option. One of the major factors considered for auto loans is the applicant’s credit history. Consequently, having poor credit can adversely affect a loan application, usually leading to rejection of the application. If you are unfortunate to have a bad credit score, it is advised that you think out of the box and look for ways of getting a brand new car even with bad credit
Below are some of the simple yet effective tips of getting a new car loan with poor credit.
Begin with Budget
It is no news that cars can be somewhat addictive and people tend to want fancy cars even if they are beyond their financial capabilities. Therefore, the first advice for getting a new car is to know your financial capacity before deciding to choose the car of your dream. Put your income and expenses into consideration before deciding on the car to avoid further damaging your credit score.
Having a bad credit does not necessarily mean you do not earn a decent income. In fact, earning a good income increases your chances of getting a car loan even with a bad credit on your report. This is so as persons with good income tend to make regular payments, which goes a long way in determining how lending institutions rate an applicant.
The income proof, in this case, will be your recent pay-stubs, with a self-employed individual providing IT statement as a validation of regular income.
Down Payment issues
Most loan applicants tend to fret if they find it difficult to make a down payment. While this might be something to think about, there is no need to worry about not being able to make a cash down payment. This is so as you have the opportunity of trading in your old car, with its value subsequently deducted from the cost of the new car.
Most car makers often offer rebates as a form of customer incentive. Therefore, it is advised that you ask the lending institutions about such rebates and the possibility of using them as down payment. This will mean that you do not have to part ways with physical cash to put money down.
Other “untraditional” options
It is suggested that most bad credit car buyers opt for shorter loan terms that come with higher monthly payments. This makes it slightly impossible to make regular monthly payments, consequently increasing the chances of missing out on payments. Therefore, it is advised that you think are creative and understand innovative options in the market before putting pen to paper. It is best to explore as many choices as possible before choosing the most suitable payment schedule.
Therefore, while you are searching for a new car loan with bad credit history, remember to try out other options. Try Blip Finance if you are looking for a new car and have had a blip