Bad Credit Car Loans for People with Credit Defaults?

You've decided to buy a new car and applied for a car loan, right? Then, the news that you have something on your credit file and you need advice on bad credit car loans. However, you might be surprised that a lot of people with bad credit would have been good credit customers not so long ago.

There have been some recent changes to how your credit file works and affects your credit score. As such, the new system is called the positive credit reporting system. Consequently, many people are falling into bad credit requirements, even when they don't have credit defaults.

Will i be approved for a car loan with credit defaults?

Quite often, we find our clients don't know what's on their credit file; or the problem with their finance applications. As such, we must take a strategic approach to your loan application assessment. Consequently, this will give you a better chance of loan approval.

Car Loan Assessment Guarantee

  • Firstly, we need to understand your credit issue, so we offer a free credit check as part of our loan application process.
  • Secondly, before you buy a new car, we can help you get a free pre-approval for finance, so you know the maximum loan amount, interest rate, and repayment of your car loan. Indeed, you know all this before you start looking for a car.
  • Importantly, we make sure your loans approved in principle so you know what you can afford and the term of the loan.
  • We have a range of lenders to help you get into that new car with competitive bad credit loan interest rates.

With competitive bad credit interest rates, you might be surprised by what you can afford. Plus, you can start on the road to repairing your credit file.

Loan Features for Car Loans with Credit Defaults

Of course, there is a range of loan options and features. Also, fees and interest rates depending on the lender and chosen finance product. However, with this in mind:

  • Firstly, larger loans above $75,000 available with a strong financial position.
  • Secondly, the vehicle age can be >10 years.
  • Also, Car Loans up to 120% of vehicle value.
  • Plus, competitive interest rates are based on credit impairment.
  • Loan terms up to 84 months.
  • Loan repayments can be each week fortnight or month. However, the most common is monthly repayments.

Additional Car Finance Information

  • Credit defaults, court judgements, & discharged part ix debt agreements & bankruptcy are acceptable.
  • Consumer and business bad credit car loans.
  • Business car loans only require business profit to cover the loan repayment.
  • Personal loans and credit cards can remain pending your income able to service the bad credit car loan.

Loan Saver Network offer bad credit car loans assessments.

  1. Firstly, car finance is very different than other forms of finance such as home loans. For that reason, the approval process and lender policies are very different. As such, we help navigate the loans and make loan applications simple again.
  2. Secondly, bad credit car finance can incur a higher interest rate, so you need to ensure the right advisor is assisting you. Consequently, a specialist bad credit advisor can ensure the most competitive bad credit car loan interest rate for your credit score.

If you need a new car and struggling to get finance because of bad credit, keep in mind, it doesn't have to be complicated. Consequently, we can help with a car loan where there are court judgements, credit defaults, part 9 debt agreement, discharged bankruptcy or other credit issues.

Importantly, we have a range of lenders to help you get into a new car with competitive bad credit loan interest rates.

Let's talk about a bad credit car loan solution that suits you

What are Bad Credit Car Loans?

Bad credit car finance is used to buy a car when you have credit defaults. Given that, we find when you have credit defaults on your credit file no lender trusts you or understands what caused the problem. Admittedly, most traditional lenders don't like lending on car loans for people with bad credit. Obtaining an approval for a car loan would help put your past issues behind you, put you on the road toward restoring your credit and getting into a decent car.

The lender risk is minimal as the car secures the loan. As a result, a competitive interest & borrowing capacity is achievable. Also, most loans do include all fees.

What credit issues are accepted for bad credit car loans?

There are many forms of bad credit such as:

Generally, the lenders like to see the credit issues older than 6 months old, and also paid. However, in some cases, it can be very recent or the credit issues left unpaid.

What types of loan structures are available for people with bad credit

The loan types available are similar to major banks and traditional car finance. As such you can obtain the same loan structures pending your credit risk. However, the same features are still available. 

  • Chattel Mortgage
  • Lease
  • Hire Purchase

As your bad credit risk increases the loan terms, and residual terms would decrease. However, Loan Saver Network offer free assessment to obtain the loan types and structures available to you.

Can i buy an older car with a bad credit car loan?

The age of a vehicle is an important factor with all car loans. Consequently, most lenders like to see a car no older than 10 years at the end of the bad credit car loan term. However, we have arranged great bad credit car loans against cars up to 20 years old at the end of term. Which, consequently opens up the availability of prestige and other desirable older vehicles.

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What Loan Terms Are Provided With Bad Credit Finance?

Bad credit car loan terms vary depending on the severity and age of the credit impairment. Therefore, loan terms can be from 1 year up to 84 months with the most preferred term at 60 months. Obviously, the shorter the loan term the higher the repayment so we find most loan terms range from 36-60 months.

What else do I need to know about car finance?

Cars are a depreciating asset with some cars dropping in value considerably when you drive them out of the showroom. As a result, we highly recommend a type of top-up insurance called gap insurance. Particularly, gap insurance covers the gap between the loan amount owed, and the value of your car in the event of an accident where the vehicle is a total write off. For this purpose, gap insurance is a second optional policy to your comprehensive car insurance.

Requiring Car Finance?

If you require a car loan with no upfront fees* then apply now! We'll have one of our bad credit car loans Melbourne consultants call you within 4 working hours. As, we help find car loans for people with bad credit.