Bad Credit Car Finance - soft search

A huge contributing factor in the car that you will end up buying is your credit score. A good credit score can open many doors for a wide variety of vehicles, but a bad credit score can slam a large percentage of those same doors shut. That being said, it is certainly not impossible to finance a car with bad credit, and for that vehicle to be the one of your dreams rather than a vehicle that will “do” given the circumstances, as we will now explain.

The first step is to identify why your credit score is negative in the first place. The assumption at first glance will be that your credit is low because of overspending, lack of funds or a related financial issue that is your responsibility, but this may not be the case. It could be a sudden redundancy from a struggling company, an unexpected family issue that has resulted in mass funds being spent, the halting of a benefit or another cause that has impacted you, but stems from a decision made by a second party. By working out the reason for poor credit, you can look to move forward.

And this comes in two forms. If you find that, yes, it is your responsibility as to why credit is low, you can then begin to formulate a plan which can reverse the direction so that you will eventually be in a position of positive credit. If it is not your fault, though, and extenuating circumstances have created the perception of poor credit, then you can use evidence emphasising this when speaking to a finance company or a car dealership, as well as records of you having previously been in control of your cash flow and being able to make your usual monthly payments. Demonstrating that your present situation is a temporary hiccup, where you are collateral damage so to speak, can allow you to progress with a car purchase.

Whatever the case may be, you can definitely still consider buying a car, but you have to be mindful of the fact that the finance company or car dealer will be wary, given that your credit score is low. Therefore, you may either wish to keep your ambitions low by opting for a cheaper motor, or to recognise that the ball is in their court when it comes to arranging a finance plan for a more costly, fresher vehicle. They will want to see that you are capable of reversing your credit situation, and as soon as possible. Why would they allow you to sign up to a hefty car purchase if your records suggest that you will struggle to meet payments? Therefore, you have to find a compromise, albeit one that will favour the dealer rather than you, at least initially.

But don’t let this serve as a deterrent. You will definitely still be able to finance a vehicle with bad credit; you just have to manage your expectations more carefully, and understand that it will take more time to build trust and prove that you are reversing your credit score, so that a year or two down the line, you’re in a more positive financial position which will make everything easier, and will either loosen the pressure of the existing finance plan, or allow you to look at handling the car finance deal that you wanted all along.

Find out more about our cars finance deals here. Over 95% of our stock can be acquired on a no deposit finance deal with unbeatable low rates. Want to know more? Call us on 01925 599079.

As part of our services we deliver the car to your premises of choice within the UK. Lately we have delivered cars in most major towns including the Southern cities & midlands: (BirminghamLondonLeicester), Northern cities ( LiverpoolManchesterSheffieldLeedsNewcastle), and Scottish cities (GlasgowEdinburgh)