Trying to get finance for a new or used car if you have bad credit can be a nightmare. Many finance companies will refuse to lend to people who have a bad credit record, are self employed or have no credit history.
The problem is that many of these people who have been classified as in the sub prime market may have no problem in being able to repay the loans. There are many different factors that can affect your credit record and your credit rating is what many lenders use to determine whether or not they will accept you for car finance.
Fortunately there are finance companies that specialise in lending to people who have previously been refused credit. These firms can deal directly with you to either lend you the money themselves or find a specialist lender for you.
One of the things many car buyers do not realise is that when they walk into a car dealership and then choose to purchase a car on higher purchase they will end up paying a premium. Most car dealers do not lend you the money directly but instead deal with third party finance companies.
If you already know that you have a poor credit rating or have been refused car finance before you should first go directly to a specialist lender or broker to get your bad credit car finance first.
Depending on your credit rating you may have to pay back more in interest compared to a person with a much higher rating. However doing your home work first means that you can dig out the best deal for you online before you go looking for a car.
One of the great things about the internet is that you can search nationally in the UK for both your finance and find your new car. There are also internet based companies who specialise in providing both a car and the finance under one roof. They can often find you a better deal too.