You’re looking to buy a new car, but the problem is, you don’t have a great credit rating. So automatically, the brightest and best new models at your local dealership are probably going to be off-limits, unless you’re lucky enough to have enough cash saved up to buy them outright. But brand-new cars are overrated anyway. They lose thousands in value the second you drive them away. So, don’t worry; there are plenty of alternatives to consider to get you on the road in no time. Here are your options:
Save Up and Buy Outright
Okay, this probably isn’t the quickest way of getting a new car.
But if you’ve already got a vehicle that’s doing the job for now and you have no immediate need to replace it, saving up some money until you’ve got enough to invest in a shiny new set of wheels is one way to get around the credit rating problem. And, you won’t need to worry about paying interest, meeting monthly payments, or all that jazz. You’ll just make your payment, and the car is yours.
On the other hand, the price of decent cars these days is on the rise, and if you’ve no intention of waiting around for your savings account balance to get big enough to buy a second-hand one, then you might want to look into leasing. You can find several bad credit leasing deals that take your income and expenditure, rather than your credit rating, into account. On the downside, they do tend to be pricier, and another disadvantage is that you’ll never own the car. However, when your lease is up, you’ll have the option to buy it at a nominal cost or swap it in for a better one. And if you’ve been a model leaser all the way through with prompt payments, they might just reduce what you pay.
If you want to own your car but don’t want to buy it outright, there’s a chance you might be eligible for a bad credit card loan. But, think long and hard before you accept any lending offer as these tend to have high interest rates and you will probably end up paying a lot more for the car than it’s actually worth if you go down this route. Have you decided that you need a bad credit car loan? Weigh up your options, do some research and get quotes first to make sure you’re getting the best deal.
If you’re struggling to borrow money because of a poor credit rating, a guarantor could help. There are many car finance companies and lenders who are more willing to let you borrow if you have somebody to vouch for you. They will need to have a good credit rating and be willing to agree to cover payments if you cannot. It’s always worth asking your family or friends if they’d be able to help you out. Just be sure that you will be able to keep up with payments as it’s a massive responsibility for them.
A bad credit rating shouldn’t have to stop you from getting behind the wheel.