Should you be dependent on financing from a bank or credit union for the purchasing of a new or used vehicle, you may find yourself disappointed.
If you have anything but a good credit history, your choice of lenders for an auto loan will be severely limited. From the point of view of the lenders, you would just be too much of a risk.
Even if a car dealership approves your application, with a bad credit history you will likely be charged a significant amount of interest for the duration of the loan period as a result of the risk that they are taking on you.
Don’t automatically give up hope though as, even though you may have made financial mistakes in the past, you can still obtain an auto loan with a little perseverance on your behalf.
Auto loans for people with bad credit do not have to be a nightmare. There a number of things you can do to try and secure the best deal possible, not least applying for an auto loan with the right lenders for you based on your personal circumstances.
Do your homework, do the math and know your limitations. It is unfortunate that you have a bad credit rating, don’t make it worse by taking on a loan you cannot afford.
Accept what the figures tell you then look for a car and the auto loan that fits in with your budget. Being prudent in this way will also improve your credit rating over time.
Realize that the car of your dreams might not quite yet be within your grasp. Accept your current situation and look at vehicles that are within your budget and price range.
Ultimately, there’s no point in buying a car that you will lose in a few months or a years time because you have failed to keep up with the payments for it.