subject: Bad Credit? How You Can Get A Used Car Loan [print this page] If you need to purchase a car but have previous bad credit, then applying for a bad credit used car is what you may need to do. A bad credit used car loan will allow you to purchase a vehicle, but you will usually be expected to pay it off in a shorter time frame and at a higher rate of interest.
Today, extended payment terms are offered by traditional car lenders. Others would even allow you to pay off the vehicle for up to 7 years. A bad credit used car loan usually must be repaid within a 48-month time frame. Because you'll be buying a used vehicle and your amount financed is less, you're expected by the lender to pay off the loan in a shorter amount of time.
Do Your Research with the Prices of Used Cars
You should research the average vehicle price before making an offer on a used car. This way, you'll know if the price was inflated by the dealer in order to make an excessive profit. It's important that you purchase the car from a reputable dealership.
There are a lot of companies who do most of their business with customers who have less than perfect credit scores. Some of these dealers may try to take advantage of their customers. Just because you have had credit problems in the past, this does not mean you should pay an outrageous amount in interest rates or other fees.
Looking for a Lender? Shop Online
If you're looking for a quick and convenient way to apply for a loan, try online auto loan lenders. You'll have access to several lenders and their rates if you apply online. When you apply for online auto loans, it would only take minutes to fill it out and on the same day, the approval is almost always granted.
When you apply for a used car loan on bad credit, it's important to remember that banks have limits to the vehicle's age you can purchase. Most banks will not grant loans if the age of the vehicle is more than 4 or 5 years old. You should also try to make a substantial down payment when purchasing a used car. This will lower both the interest rate you are charged and the length of the loan.
