Poor Credit Car Loan
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Save yourself money – use a poor credit car loan to buy a used car
When you come to buy a new car and realize that your credit score only allows you to take out a poor credit car loan why burden yourself with thousands of dollars of unnecessary debt just because you buy a brand spanking new model from the dealer? Buying a used car can save you loads of money. Let us tell you how!
10 reasons why you should use a poor credit car loan to buy a used car:
- There are millions of great used cars available that come off lease that are in excellent condition, with a full service history and relatively low mileage.
- The lower selling price of a used car will equate to a lower fee for taxes.
- Used cars are less expensive than new cars. For example a new model of the same car may cost you $20,000 but if you buy a 2 year old used car you could purchase it for $15,000, making yourself an automatic saving of $5,000!
- This saving could outweigh the increased interest rates that you would expect with a poor credit car loan. An auto lender will inflate their interest rates by around 4% purely because of your poor credit history.
- You will have a smaller poor credit auto loan as a result of the lower car cost.
- This will mean that your monthly repayments will be lower and the poor credit car loan will be much more affordable.
- You may even be able to shorten the term of the loan so that you pay off the poor credit car loan far quicker than if you bought a new car.
- This could potentially save yourself thousands of dollars in interest payments, leading to a double whammy saving.
- By keeping up the monthly repayments on a poor credit car loan you will improve your credit score over time.
- Improving you credit score will mean that when you buy your next car you will probably qualify for a far improved auto loan rate, thus saving you money again.
At the end of the day it's entirely your decision whether you want to drive off in a new car, or want to take advantage of the great savings that a used car could bring when you need a poor credit car loan. If you see the $$$$ signs floating before your eyes then you may want to jump at the chance of saving yourself mega bucks