Rates to Expect for Bad Credit Car Loans with No Money Down

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November 9, 2016

If someone is looking to buy a car, they can search the web for bad credit car loans with no money down. In all truth, this is not in the best way to buy a car. Although poor credit auto loans are available, the interest rates involved can be considerable.

Interest Rates

Interests rates can and do vary, and so does the length of the loan. Typically, the interest rate for a bad credit car loan is between 7 and 18 percent. In the case of no deposit, the interest rate will be nearer 18 percent.

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Interest Rate Scam

Unscrupulous car dealer have been known to exploit the desperate situation people with poor credit are in by raising the interest rate to as much as 24 percent. Some have been known to demand a hefty deposit in addition to the high interest rate. This should be avoided at all costs because not only is it expensive, but it bears no relation to the cost of the car.

Always Check Your Dealers

With a view to avoiding a scam, try and use dealers that have a positive reputation as a good car dealer. Be wary of the ones that offer deals where the repayments are triple the value of the car.

Where to Find a Good Car Dealer

Word of mouth is a good place to find a car dealer, as is the Internet. When searching the net for terms such as, 'No credit check auto loan,' make sure you shop around for the best price. Any scams will become apparent, and be sure to check the details of any loan agreement.

Advantages of Buying a Car with Bad Credit

Should a buyer with bad credit enter into an agreement and they maintain the payments, then they are a step closer to restoring their credit rating.

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