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.
Subprime lenders are continuing to increase their loan portfolios, but with the number of applicants at an all-time high, they can continue to be choosy about approvals.
Buying a new car is typically a great experience, but it can quickly sour if the vehicle turns out to be a lemon. If this happens, consumers – especially those with poor credit – should be aware of their rights under their particular state’s lemon law.