Borrowers, especially those with past credit issues on tight budgets, should never confuse price with cost. Price is what you pay for a vehicle while cost includes the overall expenses including gas, insurance, maintenance and depreciation.
In addition to being nearly as affordable due to lender programs and generally having fewer miles, newer used cars are less likely to be stolen and, if they are, more likely to be recovered than older model used cars.
The new definition of consumer credit, as it relates to the Military Lending Act, recently proposed by the Department of Defense could go a long way toward protecting members of the U.S. military from predatory lending practices.
When offered the chance to buy a new car, we suggest credit-challenged buyers pick one that’s affordable, fuel efficient and inexpensive to insure. Consumers who follow this advice, once they’ve reestablished their credit, will be in a much better position for their next loan.
The latest credit trends are a mixed bag for problem credit borrowers. On one hand, lenders continue to work with credit-challenged borrowers.
Vehicle straw purchases are considered fraudulent and usually occur when a consumer with good credit purchases a new or used car for someone with poor credit who cannot qualify for an auto loan.
The Costco GM Holiday Sales Event represents a good deal for car buyers – but, unfortunately, it leaves out those vehicles that most shoppers with poor credit can afford.