Even when your credit score is bad, it may be wisest to purchase a new car. Bad credit auto financing is available for the purchase of a new vehicle. Individuals with bad credit often bypass new cars because they think buying a used car will lower their monthly payments, considering the higher interest rates they must pay.
When researching ownership cost, cash down payment, and rates, rather than just vehicle price, the picture changes. It may cost the same or less to purchase a new vehicle. A new car comes with at least a three-year, 36,000-mile factory warranty.
The factory warranty lowers the ownership cost, so this is a value-add for new cars.
Lenders specializing in bad credit auto financing usually offer better interest rates and longer repayment terms for new cars. When you have longer to pay off a lower interest rate loan, monthly payments are lower. A cash down payment is often required when a buyer has poor credit.
Many new vehicles feature a rebate, which serves as a partial down payment.
There are several great new car deals. These vehicles feature warranties, low sticker prices, and manufacturer rebates. The Chevrolet Aveo and Aveo5 start at $12,275 and $12,875, respectively, have a $1,500 cash-back rebate, and feature a three-year, 36,000-mile limited warranty, plus a five-year, 100,000-mile drivetrain warranty.
This is the final year for this model so dealers want to get rid of it.
The Kia Rio starts at $12,990 and features a $1,000 cash-back rebate. The basic limited warranty is five years, 60,000 miles and the drivetrain warranty runs for ten years or 100,000 miles. The warranties are the same for the Hyundai Accent, which has a cash-back rebate of up to $500.
A restyled 2012 model is already available, so dealers are eager to negotiate on the 2011 models.
[...] How To Obtain A New Auto When Credit Is Poor Published on March 2, 2012 · Filed under: Naturally Cool; Tagged as: auto financing, auto financing information, auto loans information No Comments [...]