Car buyers – particularly those with bad credit who are often on a tight budget – should take care when picking out a used car and keep in mind the recent flooding in South Carolina. Remember: If the price of a used car looks too good to be true, it probably is.
You’ve decided it’s time to get a new car. Even though you know you could probably get more for your current vehicle by selling it on your own, you’ve also decided that’s probably too much of a hassle and, since you don’t want to come up with a cash down payment, the only option that remains is to trade it in.
But once the decision is made, you also must understand that there are circumstances you can and cannot control when it comes to how much your current vehicle is worth to the dealer.
Those used cars most appropriate for borrowers with bad credit are more affordable than they were last year.
The latest delinquency report from TransUnion shows that as more credit cards are being issued to consumers with tarnished credit, delinquency rates remain low, possibly because lenders remain cautious.
The latest auto delinquency report from TransUnion shows an improvement in the percentage of auto loan delinquencies during the second quarter of 2015 when compared to the same time in 2014.
Although more lenders are increasingly willing to work with credit-challenged borrowers, most are balancing this by requiring that borrowers have actual equity (cash down, trade equity) in these loans.
While new cars are generally becoming more affordable despite the slight dip in July, borrowers with tarnished credit would be smart to maximize their down payment while keeping both the loan term and payment-to-income ratio to a minimum. Typically this entails moderating their expectations and financing a very affordable car – at least until they’ve reestablished their credit.