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.
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.