Bad Credit Car Loans:-
Everyone is allowed to dream. Everyone’s dream is different from other people’s. A dream car for most people. Nowadays everyone can get it by dreaming of people with bad credit history. This is made possible by bad credit car loans.
Bad credit car loans are designed for people who have a bad credit history. This includes people who have defaulted on their loans when they first borrowed from their lenders.
People who are labeled as having a bad credit history include:
- People who have defaulted on their payments
- CCJ (County Court Judgment)
- Those outstanding
- Those who have applied for bankruptcy
- late payment or
Bad credit is accrued on the basis of how the borrower has repaid his previous creditor and thus we reach the credit score, which is a rating to judge your financial indebtedness.
A score that is considered bad is one that is below 600. This is a normal credit score. There are also other credit scores such as the one offered by FICO (Fair Isaac Corporation) ranging from 300 to 850. The three FICO scores are calculated by taking into account the following factors.
Payment History (35%)
Length of credit history (15%)
New Credit (10%)
Credit type used (10%)
You can get your FICO score by calculating from three different credit bureaus, such as Trans Union, Experian, and Equifax. Your FICO score will be affected by how much lenders offer you and the terms of the loan. Hence, the higher the credit score, the better loan deal you will get for your bad credit car loan.
An example of this is if you want a loan of ₹ 150,000 for 30 years and you have a credit score of 760 that would save you ₹ 2600 per year compared to similar loan terms and a credit score of 620.
Bad credit car loans come in both secured and unsecured forms. In the case of a secured bad credit car loan, the borrower has to provide security to the lender to get the loan. Whereas, in unsecured bad credit car loans the borrower is not under any obligation to provide any security to the lender. So a logically unsecured bad credit car lender carries a slightly higher interest rate to cover the lender’s risk factor.
All you need to do in order to apply for a bad credit car loan is to estimate your requirements in terms of what you want, such as whether you want a new car or a used car and how you can secure it through bad credit. Planning to get the car. loan or an unsecured bad credit car loan.
A bad credit car loan can be availed by any borrower. All you need to do is sort out all the details like financial and personal and then submit the details to the lender. You can do this online, as it will settle the loan faster than otherwise.
Some of the features of a bad credit car loan are:
- Both secured and unsecured car loans are available
- You can get a loan for both used and new car
- You can get a loan as per your budget
- While online, you can access various facilities offered by lenders like loan calculators and various quotes, and if you are unsure you can take expert advice from advisors.
Lending agencies nowadays understand how important a car is to a person or something. This problem becomes more difficult for people with bad credit history, so now we have bad credit car loans to serve people with bad credit history. These loans are now available with many lenders and the borrowers have many benefits like stiff competition among them. The customer enjoys all the benefits.
Hispanic Buyers for Bad Credit Car Loans:-
Thanks to the growing subprime loan market, bad credit car loans are easier than ever. Currently nearly half of all car loans are bad credit loans, made for borrowers with FICO scores below 620.
Beware of Bad Credit Buyers:-
Bad credit car loans come with slightly higher interest rates, which means greater profits for car dealers, and unsuspecting buyers may end up spending more than they used to. “We recognize that many consumers may not be aware that interest rates may be negotiable or that dealers may be compensated for financing,” acknowledged NADA President Charlie Smith.
This is one reason why many experts advise car buyers to use “direct financing.” This means getting a car loan directly from the lender instead of the dealer. They may not get a more competitive rate on bad credit car loans, but they can avoid the hassle of going through the dealer’s high-pressure finance office.
The difference in interest rates on new or used car loans does not change much because used vehicles do not depreciate as rapidly as new models. This makes them better short-term collateral for their lenders. The average used car costs less than half that of the average new car. So they sell three new cars. However, choosing a new car gives the buyer more control over optional features and a warranty that lasts for years.
Hispanic car buyer:-
Some buyers looking for bad credit car loans are Hispanic. The term loosely refers to all Spanish speakers. Most Hispanics in the United States are descendants of immigrants from Mexico and Central America. Our Hispanic population is now 41.3 million and is growing three times faster than the general population. The number of Hispanics will increase to 47.7 million by 2010 and to 60.4 million by 2020.
Hispanic purchasing power is growing at an annual compounding rate of 8.2%, almost twice the rate of non-Hispanic people. A recent survey by Media Audit revealed the following interesting facts about car buying:
- 26.1 million Americans are planning to buy a car this year, 7 4.7 million Hispanics out of that number, 1.9 million are planning to buy a new car.
- While 29.5 percent of all adults surveyed have a car loan, only Hispanics have a car loan of 27.3 percent.
Of the 48 million adults who plan to spend $30,000 or more on their next car, 830,000 are Hispanic.
Most Hispanics shop online for cars and loans. A survey conducted by the eMarketer project found that there will be 16 million Hispanic Internet users in the United States by 2007. Which is equal to 8.4% of all internet users. Hispanics are online at home for an average of 9.2 hours a week. Seventy percent of people say the Internet is the best way to compare prices for both cars and loans.
Prestamo Automotive is one of a growing number of automation sites targeting the Hispanic market. The entire site is in Spanish. It contains many useful articles and an application for free loan quotes. Although Prestamo Automotive specializes in bad credit loans, all levels of credit are welcome.