Bad Credit New Car Loans .... Fast

Many consumers with bad credit – that is, a FICO score below 720 – feel they can only qualify for an older used car at a buy here pay here or “tote the note” car lot. In many cases, this is absolutely not true.

And while bad credit new car loans may still constitute a minority of bad credit car loans, they are still an important part of the market and are offered by many subprime lenders.

There are a number of buyer advantages to bad credit new car loans. New cars come with manufacturer-backed warranties. And while extending these warranties to cover the entire loan term is highly recommended, it is less expensive to do this than to purchase a service contract for the same length of time on most used vehicles.

New car loans with bad credit - Advantages

Another advantage to purchasing a new car with a bad credit loan is that rebates can substantially lower the cost of a new car. While many subprime lenders will only consider a portion of the rebate to be used in lieu of a cash down payment, the overall effect is still a positive one: lowering your monthly payment.

One thing that buyers need to be aware of, however, is that a new vehicle can cost substantially more than a used vehicle. You need to be sure that the monthly payment - including full coverage insurance - fits into your budget. Insurance on a new vehicle can be substantially more than on a used vehicle so be sure to consider this before making your final decision.