Choosing New Car Loans with Bad Credit

Whether you have good credit or bad credit, whether your looking for a new or used car, there are different things to consider. At Don Wood Says Yes we can help. Just fill out our simple online application and you can get the process started.

If you are looking at obtaining a loan for a new car, even if you believe you have bad credit, there are a few things to consider:

Believe it or not, your options on getting a loan on a new car with bad credit are better than maybe a used car.

Because new cars have a fixed starting value and a well-known, finite depreciation schedule, the lender has more concrete information to work with when making a decision.

Because most new cars and trucks also come with a manufacturer’s warranty it’s assumed the buyer will be able to focus more on making loan payments than paying for repairs and the maintenance costs to keep the vehicle running. All of these factors play a role in creating a lower interest rate.

In buying your loan, it’s also important to keep in mind the length of your loan. Today lenders are offering loans that are six and even seven years long; longer than most consumers intend to own the vehicle. It’s also usually much longer than the car will be covered by a standard manufacturer’s warranty.

Second, understand that your credit does affect the auto loan. Knowing what your credit rating is, or better, being preapproved, greatly enhances you car-purchasing ability.

Special new car programs such as zero percent interest rates are not typically available to individuals with bad credit. Even customers with good credit are not always able to receive a loan under these terms. It’s this kind of information Don Wood Says Yes can provide you through our simple online application.

This type of information can help you anticipate questions that the dealer or lender might ask about your credit and give you the knowledge you need to deal with any objections to your loan application.

Lastly, be aware of what happens during the credit request process. Requesting a car loan through several lenders can temporarily lower your credit score. Rating systems treat all of your auto loan inquiries in a 14-day period as just one inquiry. If you continue to apply at different lenders during a time span greater than 14 days, the multiple inquiries can have a negative effect. Multiple credit requests result in a short-term lowering of credit scores, even if no new debt is incurred.

It’s one of the reasons why applying for credit with Don Wood Says Yes, can help put you, and keep you, in control of the process.