When you’re looking to buy a new or used car, you’ll often consider a finance plan to help you fund your purchase. But, what if you have bad credit? Will this mean a car on finance is out of reach? Well, not always. Here, with Lookers, who offer simple car service plans, what bad credit might mean for your car finance.
A smaller range to choose from
Of course, the less you can spend, the smaller choice of cars you will be able to choose between. With potentially higher overall costs, you may find your budget limits you to lesser-priced vehicles. Although that perfect model may therefore be beyond you, the quality of today’s cars means cutting-edge technology and many other attractive features are often offered as standard.
Less attractive terms
If you have a low credit score, it’s perceived that you are more likely to fail to keep up with scheduled payments. You should therefore expect a higher APR amount, which can raise the overall cost of your next vehicle if you enter into a lengthy contract. A larger deposit amount is also likely to be required, so that your creditor has some form of financial security.
Opportunity to build a good score
Despite having bad credit, opting for a finance agreement is a good chance to build your score back up to a healthy amount, which can help you gain better terms for any future car purchases.
You should always make sure you can meet all payments when you are thinking about financing a car, but bad credit certainly won’t rule you out of any potential deals.