You can get the car you want even with a bad credit score. Lenders can overlook your past credit if you prove your ability to repay the loan. This gives you the option of rebuilding your credit score and getting back on the road.
Car finance bad credit loans come with risks, like high interest rates, but they can help you out of a tough spot too. There are ways to make the most of your loan. With the right strategy, you can raise your budget and get a better car than you thought you could afford.
We have a guide to help you. Read on to get the car for you.
How to Maximize Your Budget
Before you shop for your car, assess how much your can afford to lend. There are a few steps to this, and afterwards, you will have a better idea of what you need. Affordability is your priority.
Get Control of Your Expenses
Look at all your expenses over the last 6 months. Count everything from ATM withdrawals to loan payments and utility bills. Look at ways to reduce your living expenses, everything from cooking at home to skipping daily coffees could help.
Allocate an emergency fund in case you have unexpected expenses. These could make you miss loan payment later unless you plan.
Shop Around for the Best Loan Terms
Check the repayment terms. You want a loan with no early repayment charges and some flexibility. Interest rates will be high for most bad credit loans but find the best annual percentage rate (APR) you can from a reputable lender.
Boost Your Income
See if you can work extra hours or take on freelance work. The issue with the latter is that the extra income can be hit-and-miss, but it could help you repay your loan early. You could also put your extra income towards your car and borrow less.
You could make an emergency fund by selling unwanted items like furniture, tech and clothing. You can turn a good profit after a few weeks on auction sites.
Affordable Car Models You Can Rely On
Think about your specific needs before you choose a car. If you need it for school runs, business activities or commuting, there is a car out there for you. Miles-per-gallon (MPG) is a key consideration while on a budget, as is interior space for family cars.
Here is a quick roundup to get you started.
Mini Cooper
Stylish and practical for city dwellers. The perfect commuter’s car. Enough room for friends or a trip out, and the nifty petrol engine makes it easy to get around.
Ford Focus
The ideal multipurpose car. Whether you need it for business, family or travel, drivers have trusted the Focus for decades. The 5-door hatchback models offer easy boarding, and diesel engines offer great MPG.
Peugeot 208
This 3-door hatchback is an allrounder, but it is best used for commutes and small family trips. It is a great city car, but equally at home in the suburbs. Take it on a shopping trip or squeeze it into a free spot in the work carpark; the 208 is there for you.
Vauxhall Corsa
The 5-door hatch back Corsa offers plenty of convenience. The 3-door models are great if you want to get around and about. The Corsa models are reliable, affordable cars loved all over the country.
Nissan Qashqai
Need more space? The Nissan Qashqai has what you need. Looking like a cross between an SUV and a family commuter, the Qashqai with take you anywhere, and it has enough interior space and ground clearance to serve all purposes.
Citroen Berlingo
The Berlingo is Citroen’s multipurpose vehicle (MPV). The refers to its modularity – the ability to swap and change its interior to suit your needs. It is designed to be accessible for all drivers, and the huge boot space can even fit fridge units for camping trips!
Ready for Your Next Car?
Think about the risks of car finance and weigh up your other options first. If you decide to go ahead, a loan could put a new car on your driveway fast. Get control of your expenses and make sure you can make your repayments.
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