Bad Credit Car Financing : Is It Easier To Lease Or Buy A Car?
Maybe you have some late payments on your record. You might have suffered a huge financial setback and had to file for bankruptcy a few years ago. If you are having a problem with creditworthiness you could find it hard to get a new car loan or lease. Yet, you might be in need of transportation, so you will have to find the best way to get a good car. So now the question, should you be leasing or buying your next vehicle?
Bad Credit Car Financing Pro's and Con's
Most people choose vehicle leases so they can have more disposable income each month. On average, monthly lease payments are considerably less than car loans. You could save one 100 dollars per month, maybe even more in some cases.
Saving money is nice, but you first must qualify for leasing. This can be very difficult if you have past problems with finances. In fact, most leasing companies are looking for people that have top credit and significant down payments, so you could find yourself out in the cold when it comes to bad credit car financing.
Maybe you applied for car leasing but were refused. That is no reason to give up. Many people with poor credit can obtain loans for brand new vehicles. However, it depends on what kind of shape your record is in.
Before you apply for financing, check out your credit reports. Many reports have erroneous or outdated information on them, and you will never know unless you read them. It costs you nothing, as recent laws allow you to request copies of reports from all three major agencies, for free. In fact, you are entitled to a free report every year.
As you read your reports, go over them carefully. Look for mistakes that could be hurting your rating. Also, look for positive things that may not be on the report. You might have recently paid off a credit card and this should be on your record. You also may attach a statement to the report. This can explain unusual circumstances that caused you financial hardship in the past.
When you want a new car and you think you may not qualify, check into leasing and buying. You may find that buying is better because it is usually easier to qualify for bad credit car financing than a new car lease, and you might not need a huge down payment. You may have to pay higher interest than normal, but at least you can be driving a new and dependable vehicle.
Why not try a forward thinking online lender for:
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