Car buying guide for people who are struggling to get finance
Poor credit score, due to being on benefits, absolutely no credit rating etc doesn't mean that you can not buy a car on finance. Just like everything this is wide open to meaning from finance companies. One persons good can be another's bad. There are two ways to consider when looking for car finance. The first way you can shop around the whole market. This seems like a great idea. However the reality is you having multiple credit searches against your credit file. That is actually seen really badly by loan companies as the more searches means the lower down the lenders you will sit. The second way is to find a dealer or broker who have access to as many lenders as possible. They are few and far between as numerous dealers and brokers have preferred partners or limited lenders. However there are a few companies out there such as car credit 123 with no preferred partner and a vast range of finance lenders so you get finance and the best possible rates for you circumstance.1, Do not necessarily take another person's word you have a bad credit rating check your credit rating first this way you can see what sort of finance you will be accepted for.2, You may have already been knocked back for any mortgage, credit card or loan. However cars are an easy asset for lenders to repossess so they are more likely to lend against cars than anything else.3, There is no need for any down payment! Some dealers will need one to take a car off sale till you have signed. However this can easily be refunded back upon signing.4, Ask the questions you really feel you have to. If you are not sure take your partner or a friend. You will more than likely get a higher interest rate as you are seen as more of a risk however there is always light at the end of the tunnel and this should be a means to an end.5, Factor everything in. Road tax, insurance coverage and running costs will all be on top of your payments. The good news the tax and insurance companies can take payments monthly spreading the cost. You can also get service plans to assist the cost of that. A warranty is a great idea as this will assist if you have a mechanical breakdown as not many people can pick up this kind of cost that a warranty will cover overnight.