Up to £350 Cashback £1,000 Minimum Part Exchange 136 point Vehicle Inspection Great Choice of Cars 7 Days FREE Insurance
This is a great service and l got approval within 40 minutes ! Mrs. Kelly - Enfield
I have a very poor credit history but got approved the same day Ms. Downsize - Harlow
Poor credit and no deposit - we still got the finance we wanted Mr. Regent - Romford
Is it possible to get car finance with poor credit in the UK? We tend to ask this question when
it is too late and we can only get very bad interest terms for our car loans. It is possible
to wake up in the morning, enter a car dealership and come out with a car. The only issue is
how much you will end up paying for your past poor credit.
A poor credit history will increase the cost of any car that you are planning on buying. Even
if you have a poor credit record, it is possible to get terms that are reasonable and that
you can live with.
1. Try Fixing your Credit
Buying a car should not be an impulsive buy. Planning for your next car purchase should be
done before you go looking for a car loan. Though you may never be able to completely fix
your poor credit history by paying off a few more bills owed, you will be able to reduce
your interest rates paid on the car.
Shaving off a few points from your car interest rates can mean the difference between
being able to pay off the debt and defaulting and further harming your already poor
credit.
2. Place a Higher Down Payment
It feels great walking off the car lot with little or no down payment. The only problem
with this is that your car payments are higher. Further to this, over the life of the
loan, the value of your car may be falling. You do not want to find yourself with a car
loan that is worth more than the value of the car. In the event of a claim, you may end
up still paying off the car even when you do not use it.
A higher down payment on your car loan reduces your car interest rates paid over the
duration of the car financing period. Having extra funds at your disposal is always
a good thing.
3. Avoid Conflicts of Interest
Most of the companies offering car financing with poor credit have their own cars.
It makes it easier for the buyer to leave the lot with a car. The problem with this
is that it limit’s the choice of your new car.
You will not be the first person who gets poor car credit finance and hates the car
that they got. If the car breaks down or becomes road unworthy, returning it to the
dealer is made harder since the finance company still wants you to continue making
car payments. Try as much as possible to get the car finance separate from the car dealer.
4. Get Professional Opinion
Car payments are expensive in the long run. Getting a car in bad shape makes it even
more expensive. A few extra pounds paid to a mechanic you trust to check on the car
you intend to buy will save you money and heartache in the long run.
It is great getting car finance with poor credit. It is your responsibility however
to ensure that you do not further damage your poor credit by getting a car loan that
you may default in. Take the time to research on your best possible options and you
will be able to get the car of your dreams without hurting your pocket.