Most buyers that have experienced past credit issues will end up financing a used car with reasonable mileage. But in some instances these buyers have another option – one that usually depends on their income, credit history and the programs offered by the lender they get approved with – which is an affordable new car.
With the prices of some used cars approaching that of an identical new car as well as the chance they may qualify for an online car loan for either one, car buyers with bad credit need to be aware that there is new car advertising that is designed to mislead shoppers.
Last month may have been Financial Literacy Month but anytime is a good time for consumers with questionable credit to improve their chances of getting approved for online auto loans.
In many areas such as our home state of Michigan as well as other parts of the country where there are facilities operated by the American car manufacturers, it’s been our experience that even buyers with problem credit who have applied for online car loans sometimes prefer financing a domestic car.
It’s easier to understand the reason higher-risk lenders have employment requirements if you know the three basic requirements they look for in an applicant – ability, stability and willingness to pay.
Usually one of the first questions we get from car buyers with problem credit is what interest rate they should expect on a car loan.
So while we aren’t lawyers and don’t presume to give any type of legal advice, we’d like to touch on how a bankruptcy may affect the ability to buy a car once it has been completed. What we are presenting here are simply observations based on our experiences over the years in subprime car lending.