Cars To Consider For Bad Credit Loans And Cheaper Insurance Rates
Car ownership is essential for many people to get to work and carry out household chores. When many people are already struggling, it will be hard for them to get back on their feet again without a transportation and reasonable insurance for it. This problem is highlighted with the recent economic issues that caused many people to end up with bad credit.
Most of the time, people with lower credit scores believe a new automobile purchase is impossible. Then, they believe their next option is a loan for a used auto. It is not as difficult as most motorists believe to get a new vehicle today with poor credit.
Lending institutions or banks who take a gamble on those with poor credit ratings often believe it is a safer investment to lend on a new automobile than a used one. The facts that a new car comes with a manufacturer’s guarantee, no miles on it, and no prior owners who might have sold it with unreported issues all play a part in this reasoning.
A good idea for people with bad credit is to use manufacturer refunds as a deposit. This makes it a win-win for all parties. There are things to be considered before purchasing and insuring new autos. What kind of car can somebody with poor credit apply to purchase is the main question to answer.
One of the best deals on the market that is priced around $16,000 is the Kia Spectra. With a $3,000 rebate a person with poor credit has to finance only $13,000 and the chances of qualifying for a loan is good for someone with lower or poor credit. The rebate serves as the down-payment, there is cheap auto insurance and you should expect regular payments to be reasonable.
Another great car to buy for persons with poor credit is the Kia Rio which is priced around $11,000 and offers up to $2,000 dollars in rebates. Both Kia models offer great guarantees, including a seven-year, 70,000-mile limited warranty and a ten year or 100,000-mile drive guarantee.
Another great option is the Chevrolet Aveo which cost around $14,000 and it comes with low insurance rates. However, the rebate is a little lower approaching only about $1500. It has a guarantee of three years and 36,000 miles.
Preferred by most buyers with poor credit are the cash incentives that differ from $1000 to $3000. Also, customers are happy with the cars with high rebates to use as a down payment. The higher the down payment there is more chance of getting a loan approved.
Many lending institutions are happy to offer auto loans because they are making a rather large sum on interest. Even though your credit score is low, it is possible to locate an automobile loan that is both affordable and comparatively easy to get.
The same applies to car insurance. If you get a few quotes and compare them you are more than likely to cut the costs. Banks or lending institutions requires decent level of auto insurance because the owner has borrowed money to buy the car. So, it is essential to find the most suitable coverage at agreeable costs.
Lastly, with a nice loan and cheap car insurance you are on your way to improving your credit score. Financing a vehicle, making timely payments to the lender and the auto insurance company will help you improve the credit score within a year.
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