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Getting cars on finance with bad credit

As you're probably aware, buying a car on finance means paying towards the purchase monthly. Buying cars on finance with bad credit is, therefore, a little more difficult than someone with good credit; the lender of the car needs to know how well you can repay them and whether you'll stick to the agreement. Without knowing you personally, they only have your credit report as a representation of your lending history and personality as a customer. A bad credit profile shows someone who has missed payments in the past, or has defaulted on items/loans - this isn't the kind of customers most car companies want to give out a brand new car to on finance.

 

Can I still get a car on finance?

You can still get cars on finance with bad credit, but you'll have to look for a specialist car dealer. Normally, a broker will be better to use as they can search multiple companies to find you the best deal, but they may charge a fee. Carfinance247.co.uk and creditplus.co.uk are both online brokers who can search thousands of companies to obtain you car finance, but should also try searching through your local directory to cover all companies.

 

Will I pay more?

As with most products for bad credit you'll pay more than a good credit customer. Cars on finance for bad credit are likely to have higher interest rates (and therefore monthly payments) and you may need to put down a higher deposit, or have a guarantor for your car. That's why it's important to use as many price comparison and free quote broker companies as possible to find the best deal.

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