What it comes down to is that most consumers with poor will reach the conclusion that it’s more affordable to finance a 2 or 3-year-old used car, especially with a high-risk auto loan. Considering the current level of vehicle quality as well as the high depreciation most new cars experience, this decision makes a lot of sense.
Almost immediately those same car buyers are often faced with another decision: should they buy a regular used car or a certified used car?
Car buyers searching for online auto loans should be aware of the latest report from Experian Automotive study that shows finance company loans to consumers with bad credit experienced an increase in 30 and 60-day delinquencies during the first quarter of 2013.
Applicants with bad credit searching for online auto loans that depend on social security or other types of disability benefits for all or most of their income need to understand that this can pose a problem for most subprime auto lenders. It can, in fact, result in a denial of credit.
But other than an auto loan from a high-risk lender in some cases people with blemished credit have another option they can explore in the pursuit of better FICO scores, courtesy of the internet, called peer to peer lending.
Although Ford’s certified used car program fails to cover vehicles from other manufacturers, the announcement late last summer that the company had partnered with Carfax to provide vehicle history reports is a step in the right direction for consumers with questionable credit searching for online auto loans.
For car buyers with questionable credit who have qualified for a new car loan it’s especially important to play it smart if given a choice of vehicles.
Car shoppers with questionable credit often believe that one used car lot is the same as another when it comes to applying for an auto loan. The problem with this is if these consumers don’t want to be in the same credit situation the next time they need a car they’ll need to get a bit choosier.