Borrowers with bad credit scores generally find it difficult to get car loans. This is due to the fact that many car dealers and other financial institutions in Columbus do not consider them as being creditworthy. Banks in Columbus have been noted for rejecting the loan applications of borrowers with bad credit. Bad credit borrowers are people who have over the years borrowed money from other people, sources or institutions and failed to redeem the loan on the due date, or did not even pay it back entirely. This will have a very negative toll on the credit score of such a person.
Knowing full well that you have you have bad credit, you should always endeavor to avoid taking loans. But, what if you are in dire need of a car and do not have the money to fund the purchase yourself? Will you let your bad credit scores stop you from applying for a car loan? I am sure you wouldn’t want that. But when getting a car loan with your bad credit score, should you get a new car or a used one?
Getting a new car can be very tempting because it will take more time to depreciate its value and could earn you some good money if you want to resell, as it will have better resale value than a used car. In fact, it is better to drive a brand new car. With a brand new car, you are assured of its reliability and its capacity to deliver more trips for you. It is easier to maintain, as change or repair of electrical or mechanical parts will not be necessary for a long time. But it more expensive to purchase. This is because of its high and new value.
Generally, used cars are cheaper and more cost effective. This is because of their 2nd hand value and millage already ran by the car. Buying used cars could save you a lot of money. If you are going to get a car with aided financing through a car loan, it is in the interest of your credit score to stick to used cars. Brand new cars are good alright, but you already have bad credit. Lenders see you as not being worthy of credit, and even if they give you financing for your car, it would be limited. If the funds you have access to are limited, you have to squeeze your car budget into it, which of course will not be able to cover the costs of a brand new car.
Therefore, if you get a car loan, it would be just enough to get you a used car. Furthermore, most lenders and auto dealers in Columbus tend to reduce interest rates on car loans for used cars since they are less expensive. Learn more at https://www.bloglovin.com/@toddmaxham/how-to-lower-your-monthly-auto-loan-payment
