How To Get Car Finance With Bad Credit
Sadly, in the current global economic climate, it is becoming increasingly necessary, to offer car finance to those with bad credit. Many people, have found themselves, in the unenviable position of facing the consequences, of having a less than perfect credit rating. This is good news, for those people in a financial bind that need car financing. When they are looking for attractive car finance rates, Perth drivers in this situation may be able to get the finance they need. If this applies to you, here are four top tips to make sure that you can get the best deal possible.
1. Know Your Credit Score
Many people, go into the situation of seeking cheap car finance, without knowing all the information they need. Your credit score will be vitally important throughout this process, and you need to know as much about it as possible. Get a copy of your credit report and double check that it is accurate. Many people have found mistakes on their credit reports, which adversely affected their credit score. This could be in the form, of loans that have been resolved, or incorrect amounts of outstanding debt. If there are any discrepancies, they should be addressed as soon as possible. If any mistakes are confirmed, they will be removed, and your credit score will improve.
2. Get a Down Payment Together
I know this may seem like a strange thing to say, but if possible try to get a down payment for the car you want to buy. This may be difficult to do; it may require tightening your budget and saving. If it is possible, you will find that your application for car finance will be looked at in a more favourable way. You are demonstrating a commitment to repay, your loan amount and the size of repayments will also be lower.
3. Check the Interest Rates
When they are looking for car finance Perth residents need to check the interest rates, before putting pen to paper. The rates of interest can vary a great deal depending upon which lender you choose. If you shop around, you will notice a pattern of interest rates that are more applicable to your circumstances. After this, it will be easy to spot which interest rates are exorbitantly high. Take your time with this, interest rates that are too high can cost you a lot more money over the duration of the loan.
4. Check for Additional Fees
Some lenders may require additional fees before they provide you with car financing. This may be in the form of compulsory insurance (which may be a good idea) or other hidden costs. Always make sure, that you check through the fine print of any agreement before you sign it. If there are any costs that you don’t understand, don’t be afraid to question the dealer about them.
If they would like to know more, about getting competitive car finance rates Perth drivers should contact us at Peel Subaru. If you qualify, we can offer you car finance rates, which are both competitive and tailored to your personal circumstances. Get in touch with us today, for more detailed information and we will be happy to answer any further questions you may have.