Car Loans For Bad Credit Buyers

Need a car loan?

Probably - Over 61 the publics cars were bought in the U.S. last year, according to estimates by Edmunds.com. Forty-four million were used cars. Seventeen million were new. Over half of these purchases required a car loan.

Bad credit?

Maybe - Over 30 million Americans have bad credit as reflected by low credit scores. These scores are based on ratings from the Fair Isaac Corp. (FICO), which provides a mathematical formula that ranks your credit worthiness against that of other borrowers.

Believe what you read?

Don't - The Federal Trade Commission warns consumers to, "be cautious about advertisements offering financing to first-time buyers or race with bad credit. These offers often ask a big down! payment and a high APR.

If you decide to sell the car before the loan expires, the amount you receive from the sale may be far less than the amount you need to pay off the [bad credit] loan. If the car is repossessed or declared a total loss because of an hazard, you may be obligated to pay a considerable total to repay the loan.

The final step?

Arithmetic - Before you sign on the dotted line, be sure you know the bottom line: what are you actually remunerative for the car? Get a calculator and multiply the monthly amount by the number of payments. Add your down payment or trade-in to get your total cost.

If you have a long-term car loan, you may be surprised at how much interest you will be remunerative. For example, a 72-month loan at 8 percent on a $35,000 new car will cost you around $10,000 in finance charges.

Free car loan repeat?

Certainly - Get a complementary repeat on a car loan by using the expres! s request form at Fast Car Finance. The site has more informat! ion on C ar Loans For Bad Credit Buyers.

Mike Hamel is the author of several books and online articles about auto financing. His material is featured on sites like Fast Car Finance.

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