When will car prices get cheaper?
Car prices are not what they used to be. But will car prices be cheaper again?
The current chip shortage in much of the world is driving the rise in auto prices, but the prices of the most popular vehicles were already reaching record highs before the pandemic. Now these high prices seem to persist.
But for how long ? Experts predict that the vehicle shortage that puts pressure on prices may not ease until 2022 or even early 2023. It’s a long time to wait if you’re after a lower price for that new car.
Getting a good deal as a bad borrower
If you have bad credit, you can wait and improve your credit during this time, but if you can’t wait, working with the right lender is essential. As a borrower with bad credit, your options are a little more limited, but far from over.
You can seek pre-approval from a direct lender, such as your bank or credit union. You can also try your hand at working with an auto manufacturer’s captive lender – some, like Kia, Ford, and Hyundai are known to work for many types of borrowers.
However, you might have better luck working with a special financial dealership or BHPH lot, especially for credit issues.
Knowing the ropes before heading to a dealership helps when looking for the cheapest deal on a car loan. Knowing which dealers are working with bad credit lenders is also essential. You have options when it comes to getting a car loan, but not all lenders work with all credit situations.
The ones that do are called subprime lenders, and they look at more than your credit score to qualify for a car loan.
Get the cheapest car loan possible
With auto prices high, it might take a bit of work to get the deal you are looking for. Getting the cheapest car you can don’t mean getting something for $ 5,000 or less, but getting a vehicle you can afford.
To do this, here are three tips you can use:
- Stick to your budget. You don’t want to go bankrupt trying to pay off your car loan, so a good rule of thumb is to make sure your payment uses your available budget as little as possible. We recommend that you don’t spend more than 20% of your income on your car loan, but the lower the percentage the better.
- Choose the shortest possible loan term. When you’re a borrower with less credit, you usually get higher interest rates, so the longer you delay paying off your loan, the more you end up paying.
- Bring a deposit. A down payment is one of the best tools you have for getting an affordable auto loan. The more you pay up front, the less you have to finance and the less you pay in the long run.
Direct you to your next business
Knowing which dealerships are working with borrowers on credit can be invaluable, but it can always be stressful to go from dealer to dealership in search of the right loan. Let us save you the hassle of searching by matching you with a special financial dealership in your area. TO Auto Express Credit, we work with an extensive network of dealers who help people with difficult credit. Let us put you in touch by filling out our quick and free auto loan application form.