Your credit score plays a big part in whether you can buy a car with auto finance in Brisbane or not. Having bad credit is not the end of the world, but it can make it harder to gain a suitable loan approval. Here are some handy tips on the best way to buy a car with bad credit.
Check Your Credit Score And Work On It
Ok, so the best way to buy a car with bad credit is not to have bad credit. However, that is easier said than done. Take the time to check your credit score, and see what is causing you to be in the red instead of the black. There are a number of things that you can do to help your score, such as paying off little debts and making payments on big ones, even if they are small payments.
Know Your Interest Rates
Bad credit will play a big part in what interest rate you will be offered on your car. The worse your credit score, the higher the interest rate offered. Knowing what the regular interest rate is before you go car shopping will allow you to negotiate and may put you in a better position. Make sure that you shop around for a better interest rate and don’t just accept the first one that comes your way.
Increase Your Deposit
The bigger your deposit, the lower your repayments will be. Also, having a big deposit makes lenders more likely to grant you that vehicle loan. Most places that offer auto finance in Brisbane will take into account not only your credit score but also your deposit and your income. If you can prove that you have a large lump sum and that you earn enough money to pay for the car, your chances of getting it are much higher.
Try To Get Pre-Approved
Some lenders offer a pre-approved service for vehicle loans. This will help you to know exactly how much you can spend. It will also give the car dealer peace of mind and give you a much bigger chance of getting the vehicle. Don’t go crazy when you try to get a pre-approved loan. Stick to your budget and know exactly how much you can afford. Skip the extras on a car and be as thrifty as possible. Now may not be the right time for an expensive car with all the bells and whistles.
Auto financing in Brisbane is possible, but there are a few things to consider before you apply that could set you up for greater success. If you’ve got your eye on a new car and want to discuss your car financing option, get in touch with us today.
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