loader image

Can I Finance A New Car with Bad Credit?

Apr 30, 2024 | Auto Loans, Low Credit

Introducing our latest video blog: “Can I Finance A New Car with Bad Credit?” In today’s auto financing landscape, opportunities abound for individuals with less than perfect credit scores. Specialized dealerships are emerging, focusing on providing auto loans tailored to those with poor credit histories. Additionally, major lending institutions, both nationally and locally, are expanding their offerings to accommodate customers facing credit challenges. This shift reflects a broader trend in the industry, opening doors for those who might otherwise struggle to secure financing for a new vehicle.

However, while the prospect of obtaining a new car with bad credit is increasingly feasible, it’s crucial to understand the nuances involved. The criteria for qualifying for these loans can be more stringent compared to traditional financing options. Yet, for those who meet the requirements, the benefits can be substantial. New car warranties and extended warranty options spanning the loan term are frequently available, providing peace of mind for buyers.

Furthermore, exploring the advantages and drawbacks of financing a new car with bad credit is essential for informed decision-making. While customizable features and additional perks await new car buyers, factors like depreciation must be carefully considered. Understanding the financial implications, including potential early payment absorption due to depreciation, is crucial for navigating the process effectively. Stay tuned as we dive deeper into this topic and provide valuable insights for those considering auto financing options with less than ideal credit scores.

Can I Finance A New Car with Bad Credit? – Video Transcription:

In the realm of auto financing, even individuals with bad credit scores can find pathways to purchasing a brand new car. Many dealerships specializing in auto loans for those with poor credit align themselves with franchised new car dealerships. Meanwhile, the landscape of lending institutions has evolved, with numerous banks now extending loans to customers facing credit challenges, both on a national and local scale.

This dynamic shift means that individuals grappling with bad credit may find themselves eligible for a new car instead of settling for a pre-owned one. However, the criteria for obtaining these loans are often more strict than traditional car loans, but come with several enticing advantages like new car warranties and extended warranty options covering the entire loan term are frequently available.

Also, new car buyers are treated to customizable features like color choices and additional perks. On the other hand, there are notable drawbacks to consider, like depreciation. Immediately upon leaving the dealership lot, a new car can lose up to 15 percent of its value. Consequently, a significant portion of early payments may be absorbed by depreciation in the initial years.

All that being said, it’s important to talk to a lender like Onyx Financial to see what you qualify for.

Browse Categories