Insurance

You might be despairing that you will not be able to buy a new car because your previous credit history is poor and no credit companies will touch you. However, this is not necessarily the case. Even with a bad credit history there is probably someone in the bad credit market that is willing to lend you the money that you need to buy a new car.

But bad credit car finance is not just a matter of walking down to a local car sales room, finding a car and asking for credit. These lenders might typically deal with most credit histories, but if you have a bad credit history you might suffer the embarrassment of being turned away.

So a little preparation is needed if your history is poor. Whether you have been out of the country and just not built up a good rating, or whether you have had problems in the past that have meant that you have not kept up repayments, you need to think before you charge into a loan.

Take a look around at some of the specialist lenders that are operating in the market and find which are happy to extend you an offer of a loan. Hopefully, you should find a few suitable lenders that are going to be happy to deal with you.

Ask them for example quotes on various priced cars that you are thinking of and see which of the lenders offers you the best priced loan. Do not just look at the monthly cost that each lender is proposing, look at the extras (gap insurance, PPI and so on) and the length of the loan and see what the total cost of the loan will be.

Also, check carefully any extras that you are offered such as GAP insurance and Payment Protection Insurance. Look at them to see if they are optional of mandatory and check through the small print carefully to make sure that you are covered and this cover is sufficient enough.

There is no point paying out for, for example, PPI if you are not eligible because of you employment status, or because the GAP insurance only offers to cover your car's value up to a certain book value and with the cost of the repayments your total debt could be a lot more.

Having a bad credit history is not the end of the possibility of buying a car on credit, you just need to take the time and effort to shop around between the bad credit lenders and make sure that you get the best possible deal.