Wednesday, October 14, 2009

Auto Loans For People With Bad Credit

By Mike Tucker

Should you be dependent on financing from a bank or credit union for the purchasing of a new or used vehicle, you may find yourself disappointed.

If you have anything but a good credit history, your choice of lenders for an auto loan will be severely limited. From the point of view of the lenders, you would just be too much of a risk.

If buying a car from a dealership, you should be aware that the dealership is taking a risk when approving a bad credit application and many will charge accordingly.

Don't automatically give up hope though as, even though you may have made financial mistakes in the past, you can still obtain an auto loan with a little perseverance on your behalf.

Auto loans for people with bad credit need not be a bad experience though. There a number of things you can do to try and secure the best deal possible, not least applying for an auto loan with the right lenders for you based on your personal circumstances.

Do your homework, do the math and know your limitations. If you overstretch yourself with another loan then your already bad credit rating could take a further hit that you might never recover from.

Having assessed your finances and worked out what you can afford, choose a car and auto loan that can be accommodated within your budget. Be firm with yourself and do not be tempted to upgrade and get a better model.

We all would love to buy the best car in the lot but for most of us that is not possible. Tell the salesman that your are 100% intent on buying something within a certain price range and not to bother showing you anything else.

Ultimately, there's no point in buying a car that you will lose in a few months or a years time because you have failed to keep up with the payments for it. - 30462

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