Although no one can predict what a particular credit-challenged individual’s car loan interest rate will be before their application is reviewed by both a dealership special finance manager and lender, the information from LendingTree can serve as a rough guide as to what they might be able to expect.
Credit-challenged borrowers should stay away from used cars with poor as the odds of paying for costly repairs on top of the monthly car payment increase for these vehicles.
Certified used cars come with a number of advantages, the most important of which is a manufacturer-backed used car warranty. Since AutoTrader has done much of the legwork, credit-challenged car buyers might do well picking out one of these three models, provided it fits within their budgets.
Car buyers, especially those with questionable credit, are particularly susceptible to yo-yo financing schemes in which a dealer will sign them to a conditional contract and, once they’ve taken possession of a vehicle, call them back to re-sign another contract with less favorable terms.
This list proves that a number of safe, new cars are within the reach of many credit-challenged buyers. Keep in mind that most of the rebates listed expire at the end of the month.
Raising the deductible amount on their auto insurance policies certainly can save drivers money on their monthly premiums. But those consumers with little wiggle room in their monthly budgets would do well to think twice before making a move.
In most cases, gap insurance can save borrowers a lot of grief – and money – when the finance term is over 48 months and when the down payment is less than 20 percent. Smart borrowers – especially those with credit issues on tight budgets – then need to decide if they want to purchase it through a dealer or their auto insurance company.