Car loans for bad credit are simply that … bad credit loans UK that are used for the purpose of buying a car. As a car is very important to most of us along with the fact that it will always be an expensive necessity, such loans are commonplace and widely available.
Buying a car is so important to us all – getting the right car, at the right price that’s reliable and suitable for the purpose it’s needed for. For many people their job depends on a car to get them there and in these days it’s pretty much vital that we have access to a car. That’s why, to many, buying a car is very expensive – a cheap old car is no use if it’s going to break down regularly … especially if your job depends on it … and that’s why car finance is so important.
Having a bad credit history may not prevent you from getting a car loan as there are a number of specialist bad credit car loans providers – some of which can supply the vehicle too. OK, you’re going to pay more in interest but, because the loan is likely to be secured against the car, if you can afford the repayments your application will be considered and so CCJs, arrears, defaults etc may not prevent you from getting a car loan with bad credit.
Have you been refused car credit? Do you have CCJ’s, arrears or defaults? Are you self employed? Are you in a debt management plan? If so don’t worry help is out there and you may still be able to obtain a fantastic deal on your next car.
Get a car loan with bad credit.
Financing a car with a bad credit history may not be as daunting a prospect as first imagined, there ARE options. If a new, or replacement car is a necessity and you worry that a bad credit history is likely to hold you back then worry no more – options ARE available.
There are 2 main types of loan available:
1: The specific car loan which is usually borrowed to purchase an agreed vehicle and secured on the car. Lenders of such loans may stipulate who you can buy from ie main dealers etc but the loan can be agreed BEFORE you shop.
A straight forward bad credit car loan can provide you with the knowledge and the confidence that finance has been pre-approved and that you can now start shopping around for a car. You will often be restricted to certain dealers and therefore not be able to buy privately, this is because the loan will be secured against the value of the car.
Some providers go one step further too – they will also supply the car from a national database of approved vehicles and even take in your existing car in part exchange … and all this can even be arranged online!
2: An unsecured, personal, bad credit loan that is provided directly to you in advance of your car purchase. The loan is not secured on the car and hence allows you to buy any vehicle from anywhere – even a private or auction purchase.
Because a bad credit unsecured loan or personal loan, will provide the loan before you start looking for a car it will enable you to shop around to find the right car for you as, in effect, a “cash buyer” and, as this type of loan is not secured against your vehicle you are easily able to buy any make and model, new or second-hand, from a dealer, privately or via an auction.
A further option is to lease a car or a contract hire agreement whereby, for a monthly agreed “rental” over a fixed period of time you get the use of a new vehicle – often inclusive of repairs and maintenance it may well be worth considering.