If you have bad credit, you still may be able to finance a new vehicle. New cars can be great investments that come with a plethora of benefits. However, with bad credit, it may take extra steps to determine if it is worth the possible headache.
Benefits of Buying a New Car
Having a reliable car is essential, so financing a new vehicle may be the route to go. New cars come with manufacturer-back warranties. The warranty covers repairs but only for a certain amount of time. Though they vary, new manufacturer warranties typically cover three years of 36,000 miles. Another benefit that comes with new cars is that they come with some of the latest safety and technology features.
How To Get A New Car With Bad Credit
However, new perks come with a hefty price. Every year, new cars become more expensive. With poor credit, it can be hard to afford the payments. The reason for this is because with poor credit comes high-interest rates. Also, with bad credit, you typically have to make a down payment. Though down payments are a great way to save money, they can be costly.
In order to get a new car loan with bad credit, you will more than likely have to work with a lender. Most lenders do not offer financing to those with imperfect credit scores. So with that in mind, you may have to work with a lender through a finance dealership.
Below is a list of factors to take into consideration before seeking out that auto loan you may not need.
Your income has to be at least $1,500 to $2,000 a month before taxes from one job. You will also have to provide your most recent check stubs. Someone with imperfect credit may need to provide references as well as a down payment. If you are unable to meet these qualifications, you may want to look into another way to finance a vehicle. Doing so may mean that you can’t receive the car you want.