If you have bad credit and no deposit and need a car, don’t despair. You can still get behind the wheel even if mainstream lenders have rejected your applications. Some lenders are prepared to lend up to 1.5 times the value of the vehicle you intend to purchase. This means you can also finance insurance and other costs associated with buying a vehicle.
Lenders offer these products on a case-by-case basis. Please note: not all lenders will approve finance for people with bad credit and no deposit. Finance brokers take into account all personal and financial circumstances in their overall assessment.
What you can do to help your case
If you don’t have a deposit and have bad credit, it’s generally a good idea to find a car that’s well within your budget. Consider lower-end new cars or find good deals on certified used or used cars.
Asking for less money is better for your bottom line and your lender. Offering a deposit on the car is more favourable to your financial position and may show lenders you are more responsible with your finances. However, we realise that some situations simply don’t fall into line when we want them to. This doesn’t necessarily mean you have no chance at car finance.
Beware of “double borrowing”
You may want to make a good impression on your prospective lender or financier by fronting up with a deposit. Beware of “double borrowing.” Some people take out a short-term loan from friends, family or a payday lender to make a “deposit.” These short-term “payday” loans attract substantial interest rates and could put you at risk of making your finances worse. It’s often better to be honest and upfront about your financial situation. Hiding things never helped anyone.
Bottom line: it is possible
If you have no deposit to speak of and have a less than great credit history, you can get vehicle finance. The financial professionals at Bad Credit Car Loans have access to Australia’s top bad credit car financiers and lenders, fighting hard to get the best and fairest deal for your situation. We believe people should have a second chance at finance. We believe that lending to responsible people with bad credit will improve their credit history over time. Want to know more about bad credit car loans? Don’t have a deposit? Contact us today for a quote or consultation.