The data from Experian’s latest report shows why buying used is the best option for many bad credit auto loan seekers. Of course, there is also a right way to buy used.
You’ve decided it’s time to get a new car. Even though you know you could probably get more for your current vehicle by selling it on your own, you’ve also decided that’s probably too much of a hassle and, since you don’t want to come up with a cash down payment, the only option that remains is to trade it in.
Those used cars most appropriate for borrowers with bad credit are more affordable than they were last year.
When we look at options that are very low cost, like older used vehicles, it can become very challenging to find a loan that allows you to get that vehicle financed. On the surface, it doesn’t make sense; the car you are looking at is extremely affordable, but you can’t get financed for it. Why?
Seeking out a new car can be very exciting, but have you considered all the angles of a new car purchase? Even if you are dealing with damaged credit, you may still have a high enough income to technically “afford” a brand new vehicle. But stop and think for a minute. Do you really want to push the envelope of your budget just for the new car smell?
Buying a used car doesn’t have to be a stressful experience. You can successfully purchase a vehicle that will last for years if you just have a good plan and ask the right questions, eliminating as many unknown variables as possible.
If you find a car that you’re interested in buying, only to discover that it isn’t actually owned by the seller, you may want to think twice about proceeding with the purchase. Buying a car with a lien can be a lengthy and complicated process.