Posts Tagged ‘Bad Credit’
Scrappage scheme extension is good news for car loans
The end date for government’s Scrappage scheme has been put back a month to the 31st March 2010. Good news for anyone buying a car (especially those with a less than perfect financial history), the Scrappage scheme offers upwards of £2000 towards a now car when you trade in your 10 yrs+ banger. In a bid to secure your business, manufacturers are doing their bit to lure you in with tempting deals on certain models.
Take Ford; if you’re in the market for a people carrier, or you could be persuaded to be, they’ll lop £5000 off the price of a Galaxy Edge. Volkswagen have taken over £4000 off all Passats, Citroen are being highly competitive with nearly £8000 off Xsara Picassos and Volvo aren’t far behind that figure with close to £7000 off the XC90 SUV. Mitsubishi have come up with a unique offer; they’re offering a standard Scrappage deal on all cars up to five years old.
So, if buying a car means borrowing money to do so, it’s easier to get a loan at good rate, even if you have bad credit, when the amount you’re borrowing is less. Or, it means you can buy a better car; safer, more efficient or bigger – whatever your idea of better is!
With the end of March fast approaching, every vehicle manufacturer is going all out to capitalise on the Scrappage scheme, buyers are being offered even more in a bid to boost the flaccid car market. It might be all doom and gloom in the news, but for buyers, it’s looking rosy for another few weeks still with money off coming from the government and manufacturers.
Find out more about car loans.
General Car Financing Tips
When buying a car you need to know what your credit scores and history say. Sometimes a bank or loan office is going to try and offer you a worse deal than what your credit scores really reflect in order to make more money. They may fudge the credit score numbers to make it seem probable that you are more of a risk. Knowing what your credit scores are can help you determine if the loan company is on the up and up. You have two options for car financing. You can go through the dealership for financing or you can seek financing on your own. In either case know your credit score and history. Make sure there are no surprises.
If you are refused a loan because your credit is not sterling enough you will need to wait for a few months until your scores are in a place that you can obtain a loan. Don’t try to find multiple loans when your credit has already been rejected chances are the other financing will refuse you and make your credit score worse.
When searching for a loan for car financing you are going to want to make sure you have researched the current market. You will want to know what the current car loan interest rates are for someone with sterling credit as well as someone with little credit or bad credit. If you know where the numbers are on average you can negotiate for a better loan. This will help in the long run. Remember you don’t have to take any loan that seems fishy or just isn’t what you hoped for. You have the right of refusal.
Keep in mind that a down payment towards a new car is going to help you with the loan. A car dealership is going to hope that they can get a little money from you up front and the car financing will appreciate this. It will lower the overall amount you need to borrow and make your payments more affordable.
Keep in mind that you can also trade in another vehicle. If the trade in value is a fair price you can also have the down payment to partially pay off the car. This will again lower the financing you need to obtain. You can also just trade in a vehicle without the down payment if that is what you would like to do.
There are many options and tips regarding car financing and overall using common sense and knowing where you stand financially is going to save you a lot of hassle and get you what you want.