Best Guaranteed Car Finance for Your Money

Guaranteed car finance isn't usually a good option for getting an auto loan, but if your credit is poor and you can't get a loan approval from any other source, it may be your only option for buying or leasing a car. Getting guaranteed car financing with poor credit means that you'll have to pay high interest costs, and you may also be subject to additional fees and conditions. Guaranteed car loans are expensive, but this guide will give you some tips to help you make sure that you're making the best of your situation and spending as little as possible.

The more lenders you have to compare, the more likely you are to find a comparatively good deal. Don't stop at banks, local credit unions or captive finance companies; search for online lenders as well. Online lenders can give you approval for a loan within minutes of submitting an application, making them a quick and easy source to compare. Just be careful to make sure online lenders are legitimate before providing them with any personal information.

When considering offers from different lenders, there's more to take into account than just the interest rate. Check for additional fees, stipulations and penalties that will make your supposed "best deal" much more expensive than you think before committing to a loan.

After submitting applications to different lenders and receiving offers, you can try to negotiate to secure the best deal for you. Your poor credit may not give you much leverage, but offers from other lenders might. You can always ask lenders to meet or beat the best deal you've received. Don't be disappointed or surprised if they refuse, however. Even if you can't negotiate a deal that's better than the best you received, you've lost nothing by trying.

Making the largest down payment you can on a new or used car purchase means less money financed. The less you have to finance, the lower your interest charges-and possibly rates-will be. Paying more up front may force you to make sacrifices now, but will be much cheaper in the long run.

Paying back a guaranteed car loan responsibly will slowly boost your credit. After a year or two, your credit may be back in a range where you'll be able to refinance and enjoy lower interest rates and fewer penalties. If you can't refinance with your original lender, you can always take out a loan from a new lender to pay back the first and begin making payments to the new lender instead. Refinancing after your credit is repaired can save you money you would otherwise be spending on interest payments.

By following these 5 tips, you'll be able to get the best value possible if you have to take guaranteed car financing.