If you know you have a poor credit history, then it can mean buying a new or used car is difficult. Transport is an essential part of life these days and many simply can’t afford to live without a vehicle, especially if public transport links are unreliable and expensive.
It’s true that for the most part, new cars are safer, more reliable and come with the latest tech. Used cars are still very much worth considering though if you know what to look for. Which is the best to buy if you need new wheels but also have a bad credit rating?
Bad Credit Rating Means You Might be Rejected for a New Car
Car dealerships tend to only offer credit to people with excellent credit ratings. This means they tend to focus on the high credit market only and won’t consider anyone with previous credit issues. In some cases, it doesn’t even matter how long ago the poor credit issues took place. This can make buying a new car a no-no from the get-go.
Are There Previous Marks on Your Credit File?
Every time you make an application for finance, it leaves a ‘mark’ on your credit file. Therefore, if lenders find a lot of different applications for credit in a short space of time, they might assume you were desperate for money. This can then lead to your application getting rejected straight away. Never make multiple applications for credit or credit cards at once.
Is Using a Bad Credit Card Finance Broker an Option?
If you know you have a bad credit rating, getting any sort of finance, whether for a new or used car, can be difficult. In circumstances like this, the best course of action is to opt for a bad credit/no credit car leasing scheme from a reputable company. Every person or family situation is different and should be treated as such when making an application.
Used Car Versus New Car – Which is Right for You?
Bad credit means that any purchase you make, whether for a car or otherwise, is a great consideration. Therefore, it makes sense to try and find the most cost-effective solutions to ensure you can buy what you want at an affordable price.
While a new car is more reliable, they can often be a greater financial burden. Not only that, a new car will tend to depreciate in value the moment it is driven off the forecourt. A used car from a reputable dealer should be thoroughly checked and in great condition. Used doesn’t always have to mean very old, either.
Consider looking at dealerships who sell used cars that are only a few months old, or from the end of one run of production before a new model was brought in.
A used car means you’ll still have to factor in the MOT, servicing and extra maintenance it may need. These are inexpensive compared to purchasing a car that is brand new. Therefore, when considering whether to buy used or new when dealing with issues of bad credit rating, it may prove more cost-effective to opt for used cars only.