Instead of thinking of a down payment as a hurdle, car buyers with credit issues should think of a down payment as a way to save themselves money as well as a way of contributing to the success of their credit repair efforts.
Unless they report all of their income, credit-challenged consumers who get paid under the table will find it very difficult getting approved by a subprime lender. But there are acceptable alternatives including paying cash as well as getting financed with a BHPH dealer that reports to the credit bureaus.
While much has been made of Generation Y’s aversion to debt, debt is not something any generation can easily escape especially when considering a vehicle. So then what are your options when confronted with financing a car?
The New Year brings with it, in many cases, additional requirements for subprime auto loans. This means that borrowers with credit issues should typically be prepared to furnish the previous year’s W-2 in addition to their most current pay stub.
If your new car, truck, van or SUV is stolen or totaled in an accident, your insurance company will only pay for the current market value of the vehicle. This means that you could potentially still owe thousands on a car you can no longer drive. However you might have a different story if you purchased Gap Insurance.
It’s not uncommon to have more than one vehicle in your driveway. What may be uncommon, though, is for all of those cars to be in good working order. And that is unfortunate, because there might be some situations in which having two well running cars are necessary. If all of your cars are paid off, and your finances are good, getting approved for another auto loan shouldn’t be a problem. But what can you do when you are already making payments on a financed vehicle and need a second one?
When you bought that brand new car eight months ago, everything was going great. The job was going well and, in general, things were on the up and up. But recently, things haven’t been so great and now you are struggling to keep up your payments. What do you do?