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Options For Car Financing With Bad Credit

These days, nobody wants to keep on driving an unreliable car, and with the regulations and prices in the UK regarding the cost of tax on a lot of vehicles, many people consider changing their vehicles so that they will not be affected by the higher tax payments or simply because they need to drive a more reliable car. This article will discuss some options available for car financing with bad credit. Although difficult to obtain, it is still possible.

Options for Car Financing

Most people rely on financing to buy a new car because not everyone has saved loads of money. To finance a vehicle purchase, among the available options include dealership finance, secured loans, bank loans, PCP or Personal Contract Purchase, and HP or Hire Purchase. For people who have a good credit history, most options are available for them. Apart from having many choices, they also have a better chance of getting a good deal on their vehicle purchase. However, for those who have bad credit history, the situation could be really different.

Car Financing with Bad Credit

If you have bad credit, then your options for car financing are limited mostly from a car dealership loan or finance specifically aimed at people with poor or bad credit. There are many car dealerships that mainly target those who have bad credit. However, the APR or annual percentage rate (interest rates) on this type of finance can be costly. This means that your monthly payment may be really expensive. Aside from this, getting a dealership finance could also mean that you may have limited options on the vehicles that you can buy because you will only choose from the available ones offered by that dealership.

If you have tried looking into car dealership finance, but the interest rate is too high or you do not have many vehicle options, then you may consider getting a loan from a firm or lender, which offers car financing for people with bad credit. There are some advantages to going with this option, instead of car dealership finance. First of all, the APR can be much lower in comparison to dealership finance, which means you can save some money on your monthly payments. Then, obtaining a loan will allow you to buy a car through any car dealership. This way, you will have more options in terms of vehicles.

Finding a Lender

There are various lenders who offer car financing with bad credit. Depending on how bad your credit history is and your particular situation, you may be qualified to get an unsecured or secured loan. You may search for a lender online and find out if they specifically target those with bad credit. Moreover, remember to check more than one lender so you may compare their interest rates and any other terms and conditions on their loans. This will ultimately make sure that you will obtain affordable, if not the best, loan plan to finance your vehicle purchase.

Some Of The Expenses You Need To Know About Car Maintenance.

Owning a car is not just don't pay for your loan payment every month, paying your car insurance, and buying gas. Unfortunately, there are also other additional to manage. Maintaining your car properly keeps it running smoothly and helps limit the major costs you could encounter if something goes significantly wrong. Plan to pay these five unavoidable costs.

1. Oil Changes.

Your car can't keep running forever on the same motor oil. Your owner's manual will guide you on the number of times you need to change the oil, and if you'd like, you can top it off on your own halfway through the interval to ascertain that the oil is enough to get all the way to the recommended time to change it. One way to reduce this expense is to find coupons for oil and oil changes.

2. New Tires.

Your car will go through a set of tires every 40,000 miles or so, depending on the car and the tires. You can help prolong their life and decrease your overall vehicle repair costs by keeping them inflated to the proper level and rotating them every 5,000 miles to help them wear evenly. Keep an eye out for tires with low tread so you can start saving up to replace them.

3. Brake Pads.

You will need to replace your brake pads every 30,000 miles or so, depending on how you drive. If you do more highway miles than city miles, your brakes will likely last much longer than that, especially if you make an effort to keep from braking hard and coast to a stop as much as possible.

4. Battery.

Most car batteries are rated to last anywhere from 2 to 5 years under normal conditions. Selecting batteries with longer life spans will be more costly up front but save you in the eventually. In addition, maintain the connections going into the battery to help it last as long as it's supposed to and limit your vehicle repair costs.

5. Scheduled Maintenance.

The last major category of costs is for general scheduled maintenance. The owner's manual for your car is the best place to find the information you need to estimate these costs. The manual will let you know when you need to replace spark plugs, belts, and other major components. Plan ahead so you have money to pay for these when it's time.

By being aware that these maintenance costs are coming, it's a lot easier to plan for them in advance so you don't have any major bumps in your budget so you will have the money on hand to cover these maintenance costs.