Bad credit auto loans can help you get the wheels of your choice even if you are suffering from a low credit score. Whether you want a car or a SUV, you can get the finance needed for the purchase by availing bad credit auto loans. A bad credit can happen due to various reasons like CCJs, arrears, default and missed payments etc. Therefore, if you are suffering from a bad credit history you can still buy your dream car or motorbike with the help of bad credit auto loans.
As the name signifies bad credit auto loans is meant to finance the purchase of a car, jeep, SUV (sports utility vehicle), MUV (multi utility vehicle) etc., of your choice in case you suffer from a bad credit record. Bad credit auto loans generally come in two forms: secured bad credit auto loans and unsecured bad credit auto loans. Secured bad credit auto loans need collateral to be pledged whereas an unsecured bad credit auto loans does not need any collateral. However, it s important to remember that secured bad credit auto loans come at a lower rate of interest than an unsecured bad credit auto loan.
Retail is what the dealer should ask for the car. This will help you to know whether or not the salesman is trying to add money to the car, or if the dealership is. Trade-in is a figure to gauge approximately what the dealership traded for the car for. It will give you an idea of what the dealer paid for the car, before reconditioning fees and any ticket from service. Now, not every make of car will bring trade-in value. Two that will at this time are a Honda and a Toyota. Those cars will bring trade-in value. Domestic cars generally will not bring trade-in value, with the exception of new, hot models. Other models will only bring wholesale. As an example, Kia makes a great car, but most will not bring close to trade-in value. Mitsubishi is going through changes and also won t bring close to trade-in value. There are exceptions to the rule: Katrina and Rita-two hurricanes that created a short supply of used cars. If you live in the south, that will be the case for a while. With the exception of a Honda and a Toyota, you can probably be safe offering less than trade-in. Not thousands, mind you, but less.
Take into consideration the other costs of trading for a car. Also, ask the salesperson how long they ve had the car. If the salesperson slips up and tells you they ve had it a while, your negotiating should be easier. The reason behind that is that the dealer is paying interest on the car every month it does not sell. The book value is also dropping every month so it needs to go.
Personal loans are usually considered sub prime and are available at a higher rate in interest. It is important to look around for the best interest rates possible because interest payments, if rolled over, can quickly cascade and cause a military serviceman to sink into a debt trap.
The author is a business writer specializing in finance and credit products and
has written authoritative articles on the finance industry. He has done his
masters in Business Administration and is currently assisting Bad Credit Auto
Loans as a finance specialist.
A related resource is Bad credit auto loans: get the vehicle of your choice in spite of adverse credit
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