New Car Financing with Poor Credit Car Loans

You can sometimes finance a new car with terrible credit auto loans

Answering bad credit questions

Even with bad credit it is sometimes possible to finance a new car using horrible credit auto loans.

We’ve seen this many times in the nearly two decades we’ve been involved in bad credit auto sales here at Auto Credit Express.

In addition to answering bad credit car questions, we also explain to applicants why a tote the note dealer won’t help their credit scores and we cover the bad credit auto loans process so they can stay clear of many of the issues that result in repossession.

Bad credit car loans

Having been in the bad credit auto loan business for almost twenty years, we’ve seen the number of banks offering loans to credit-challenged customers grow from just a handful to dozens of national, regional and local lenders.

Many of the programs they offer include the possibility of financing a new car. And while the lending requirements for these poor credit car loans are much stricter than typical car loans, there are still quite a few new car models that qualify for these programs.

New car advantages

There are a number of advantages to buying a new car:

1.    They come with a new car warranty
2.    New car warranties often include free roadside assistance
3.    There is usually an option to purchase an extended warranty to cover the entire loan term.
4.    You usually have a choice of colors and options.

New car disadvantages

The biggest drawback to purchasing a new car is depreciation. A new car will typically lose at least 15% of its value as soon as it’s driven off the lot. This means that most of what you shell out in payments during the first couple of years will be lost to depreciation. It also means you’ll be “upside down” in the loan for the first 2 ½ years of a 5 year loan.

The solution to this is to put at least 20% down while keeping the length of the loan down to 48 or even 36 months.

The Bottom Line

Many credit-challenged customers that qualify for poor credit car loans may have the choice of financing a new car. But even then, driving around from dealer to dealer can be time consuming as well as embarrassing and discouraging.

That’s why Auto Credit Express helps people with bad credit find a dealer that can get them financed for a bad credit car.

So if you’re serious about getting your car credit back on track, you can start now by filling out our online auto loans application.

Posted on August 29, 2011 by in Auto Loans, Bad Credit, New Cars
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