JoshWell known car dealers, Lookers, who offer a variety of car service plans, look at just how your credit score can take it’s toll on your ability to secure the car finance plan that you have in mind.
Although having a bad credit score may result in you being able to pick from a narrower choice of cars, it is important that you do not lose faith during this process, as you’ll still most likely be able to find a car finance plan that is able to cater to your needs. In fact, it is important that you see this as an opportunity to build a good credit score rather than taking a negative approach to this.
Are there any specific terms that you must abide by?
One thing you probably should expect when entering a car finance plan with a bad credit score, is that you may be expected to pay a higher deposit to the creditor. This gives them financial security if you’re unable to keep up with payments. Another thing to keep in mind is that you will probably also be made to pay a higher ARP amount compared to someone with a good credit score. This can raise over all costs of your next vehicle if you enter a long-term contract. This is as expected, as if your credit score is bad, you’re bound to have to abide to stricter rules and regulations.
Are you limited as to which cars you can pick?
Generally, if you have a bad credit score, you may be limited as to which cars you can pick from, and may be left to pick from lower priced vehicles. This shouldn’t be a reason for concern however, as with today’s cutting-edge technology, most attractive features are offered as a standard, regardless of the price.
Do you have a steady income? Will you be able to meet each payment on time?
It is very important that you think carefully before getting yourself into a car finance plan that you ensure that you’re capable of meeting all of the payments. This can be a popular method to funding your car however if you prefer monthly payments rather than an enormous sum all at once.