When most of us go to a car dealership to buy a car we expect to be able to get car credit. Most of us know it as HP or higher finance, it is the equivalent of getting a mortgage for a house.
A car is probably the second most expensive item most of us will buy, many of us rely on financing to be able to get a new car or at least new to us. Many of the larger car dealers will have their own in-house financing schemes that they can get access to on your behalf to provide you with car finance.
Car finance with bad credit can be more difficult although not impossible to get. With many of the car sales dealers they will be able to call up on several credit companies to provide you with a loan. Some opt to stick with one particular finance firm to provide credit to the car buyer.
When they check your details on the computer they will more than likely have several lenders that can provide you with a car loan. The car dealer will then usually choose the lender that provides them with the biggest kickback. That is right, not only are they making money on selling you the car but also by lending you the money.
You can however go directly to one of the specialist car financing companies. There are now several different financing firms that specialise in providing car finance to people with bad credit. Bad credit car finance can provide you with the money to be able to get the car you want. This means that you do not have to depend on the car dealers whose finance companies accept you.
Rather than doing a credit check on you which may bring bad a poor credit score and therefore automatically refuse you the finance, they will look at your ability to repay the loan. They are specialist lenders and deal with people who have a poor credit record and specialise in bad credit car refinance.
If you take the time to compare different car refinancing offers online you will be able to get the best or cheapest rate. If you went straight to the car dealership you may well be stuck with a very high rate with no choice or other options.
Once you are accepted for the loan you will be able to also get the best deal on a car. On a car dealership finance deal you do not have and leverage to negotiate the price of the card down. With the loan already sorted you can pick and choose the best car deal thus saving you money on your repayments.
