Even if you have bad credit, it's sometimes possible to finance a brand new car.
Most of the dealerships that offer poor credit auto loans are actually franchised new car dealers. At the same time, the number of banks offering loans to credit-challenged customers has grown from just a handful, to dozens, both nationally and locally.
This means that in many cases, bad credit customers might qualify for something other than a used car. And while the lending requirements for these poor credit auto loans are much stricter than a typical car loan, there are a number of advantages to buying a new car:
New car warranties that often include free roadside assistance
There is usually an option to purchase an extended warranty to cover the entire loan term.
You usually have a choice of colors and other perks that you would not normally get with a used car purchase.
Of course there are drawbacks to purchasing a new car, like "depreciation". A new car will typically lose at least 15 percent 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.
But you can also offset these issues of negative equity by either making a down payment of at least 20 percent, or by reducing the length of the loan.
At Auto Credit Express we help people with bad credit find a dealer that can give them their best chance at an approval for a new or used car. If you're serious about getting your auto credit back on track, you can begin now by filling out our online car loan application now.