The latest report from Experian shows that the growth in subprime auto loans is slower than the overall market. As a result, borrowers need to be aware of their credit situation, have a down payment and pick an affordable vehicle in order to give themselves the best chance of success.
Not all borrowers with problem credit will be given the option of financing a new car, but if they are and it’s through one of the franchises listed above, they probably wouldn’t go wrong choosing any one of these “cool” cars.
Although the subprime sector remains strong, consumers with larger down payments and lower loan to value ratios will continue to have a better chance of getting an auto loan approval.
Consumers with checkered credit are far more likely to get stuck financing a vehicle with hidden damage than other buyers. By following all the above steps they can prevent this from happening.
There is certainly nothing wrong with a lease to own vehicle if a borrower’s credit is really bad and they have no other alternative. On the other hand, if they can qualify for a subprime loan, the advantages include newer vehicles with lower miles, vehicle warranties that often cover the entire loan term and the chance to reestablish their credit and improve their credit scores.
Credit-challenged consumers who understand their credit scores (and what really affects them) as well as their credit reports (and what is and isn’t in them) will find themselves ahead of the game – considering that 40 percent or more of Americans with good or excellent credit don’t really understand either one.
Both private and SSI disability income is usually an issue with any car loan but it’s an even bigger problem if the buyer has tarnished credit. For most borrowers in this situation, the only alternative is a buy and pay here, tote the note, dealer that offers in-house financing.