From our own experience, one key to successfully completing a subprime car loan is the ability to keep a vehicle in running condition. In many cases, a service contract can help borrowers on a tight budget avoid unforeseen expenses while keeping their credit repair plans on track.
Not only is each of these vehicles among the best buys in their respective segments representing a good value for your vehicle dollar, all have a starting MSRP of under $20,000 – making them particularly appealing to credit-challenged borrowers. In addition, according to U.S. News, any one of them would be a good choice for a new vehicle.
Credit challenged car buyers can purchase a vehicle from an out-of-state dealer. But before doing this and if they live in a state that charges a vehicle sales tax, they should check to see if the dealer’s state is reciprocal. If it isn’t, they need to arrange with the dealer to have a check cut back to them for tax, title and registration fees. Otherwise, these buyers will have to come up with the money out of their own pockets.
Because of the higher risks involved with subprime loans, credit-challenged borrowers usually can’t get approved for a car loan if they’re considering buying a vehicle from a private party.
One of the keys a successful subprime auto loan is financing a vehicle that’s dependable. In that regard, the latest findings from J.D. Power and Associates should help credit-challenged borrowers select the right vehicle.
Dealers don’t determine the down payment amount on car loans, lenders do. In addition to increasing the chances the loan will be paid off, car buyers with tarnished credit should view down payments as a way to reduce interest charges as well as a way of contributing to the success of their credit repair efforts.