Rise in demand for bad credit car loans

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Rise in demand for bad credit car loans

11th June 2009

Our enquiries for bad credit car loans show an increase in 2009 despite the recession. Due to recent developments this trend could continue.

There is no doubt that the continual drops in interest rates are starting to have an impact, as our figures show an increase in enquiries relating to bad credit car loans during the first part of 2009. People who have been holding onto their old cars for a while may now feel that the time is right to upgrade. However, people with a poor credit history might be turned down for credit by car dealerships and high street banks.

If you are amongst the many people in this category, then don't worry, there are other options. You may have to pay a higher interest rate than people with a good credit history, but you will find that you can obtain credit to finance a car purchase, subject to certain stipulations. These vary from lender to lender and can include the requirements of: holding a current bank account, being above a certain age and being in full-time employment. Most lenders will also ask for the car to be used as collateral for the loan, so that they can repossess it if you fail to meet the payments.

You can access a number of lenders through our website; some concentrate on granting various types of credit to people with a poor credit history, and some specialise in car finance for people with a poor credit history. You can request quotes from a number of these to see which offers the best terms for you; bear in mind that terms typically include the rate of interest, the repayment period of the loan and the amount that you may have to pay as a deposit on the car.

Recent news headlines suggest that demand for car loans may continue to increase. According to reports, Peter Mandelson is preparing to give people a 2000 reward for trading in cars over nine years old. The 2000 would then be used to purchase a new car or a car less than one year old. Although a final decision has not yet been made regarding this scheme, discussions have reached the latter stages. As well as the potential benefits to the car industry, newer cars are also more environmentally friendly than old ones.

Together with the availability of car loans for people with a poor credit history, this recent development could provide a good incentive to exchange your old car.

Posted in Car finance

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