The idea of buying a car when you have poor credit can seem like a far-fetched concept, considering there are very few lenders who will even look twice at your application. However, if you have bad credit you should know that your situation isn’t completely hopeless, and there are some steps you can take to maximise your chances of getting a decent vehicle on the road even with a low credit score. To give you an idea of the options you have available, here are the three main ways you can buy a car even when you have bad credit:
1. Get a Bad Credit Loan
Taking out a bad credit loan is by far the fastest and easiest way to obtain the funds you need to purchase a vehicle. It’s important to note that these loans are often smaller in size, so your options will likely be restricted to the used car market. Still, you can find previous-decade vehicles that are still decent shape for £2,000 or less. You’ll also need to apply for this kind of funding with a payday loans direct lender, as they’ll be able to give you access to the funds quickly and with minimal hassle.
2. Use Your Proof Of Income and a Down Payment as Leverage
Some used car dealerships will accept applicants with poor credit so long as they can provide proof of a stable income along with a significant down payment. Keep in mind that many of these places will charge you by the week and will have devices in place that can disable your vehicle remotely if you don’t pay, so expect very little leniency in that regard. Plus, failure to make your payments could lead to repossession and even further damage to your already struggling credit profile.
3. Look for Mechanic Specials and Fixer-Uppers
It might not seem like an ideal route to take, but if you really want to find the cheapest deals on used vehicles and broaden your horizons as a consumer with poor credit, you might need to learn a bit about changing basic parts. In many cases, you can buy an imperfect used car that needs something simple like a starter motor or fuel pump and with a cheap part and few hours of labour, you could be on the road for an unbelievably cheap price. In fact, many people will even let their non-working vehicles go for absurdly low prices or even for free, simply because they want somebody to come and tow it out of their driveway.
Don’t Give Up Before You Try
Surprisingly, the reasons why many people with poor credit don’t have a personal vehicle is because they automatically assume that there’s no way they can be approved. If you can show that you’ve been working at your job for a long time, can prove your income with bank statements, and you’re willing to pay a significant down payment, you can rest assured that you’ll be able to get into a vehicle. If you can’t afford the down payment, you could take advantage of the first tip and obtain a bad credit loan to help with that part.