Don't get ripped off with Bad credit car finance!

A few years ago when finance companies started subprime car loans, it helped out the used car market a lot. Older cars were scrapped because everyone could get a car loan with a balloon.

The reality of such loans can sometimes be not that nice for the owner of the car. A car loan for bad credit can involve a car loan quote with lots of hidden extras. Guaranteed car credit is often at very high rates of interest, sometimes in excess of 30% APR with large baloon payments in 3 or 4 years time.

Its also common for the price of the car you buy to be very un competitive, and if you were in a position to buy that car with cash you would get it much cheaper. Your car loans calculator should include many elements and you should always work out the overall yearly cost of running a car and make sure it offers you value.

Your car loan rate is not the only thing to consider as there can be early payment penalties which can make car refinance very difficult.

With many bad credit car loans you are quite limited with the choice of car you have, as often the lender likes you to have a newer, but lower spec volume car, rather than a slightly older higher end car.

If you do not have a poor credit history you maybe better off borrowing the money on an unsecured bases from you bank or online lender. For some people bad credit car financing should be a last resort only when you really need a car or van for your job or your living. Some car finance companies have plans that are no credit check. However these no credit check schemes are very expensive.