Why High Mileage Used Cars And Bad Credit Loans Are A Good Mix For The Troubled Borrower

Poor credit auto financing is available for those suffering from serious financial problems. One way to improve the chanced of being approved is to "downsize" your auto requirements. Instead of looking for the perfect used car or one that is going to last many years, buying a decent car for the short-term with the intention of upgrading in two or three years might be the better strategy.

A High Mileage Used Vehicle Could Be A Good Choice

A used car with 175,000 miles on the odometer is not exactly the most perfect vehicle. The low $2,000 asking price probably appeals to someone with low funds and bad credit. Once you actually audit your intended use for the car in relation to the operational costs, the vehicle starts to look like a good deal.

The average number of miles a person drives a car is about 15,000 miles per year. Certain models of cars can last 200,000 miles provided they have properly been taken care of. If the vehicle is a reliable model with 170,000 miles on it and you drive less than the average number of miles per year, the old car is actually not a bad short-term purchase.

Addressing the Immediate Goal of Buying a Car

With options limited, your first and only goal right now should be seeking approval on bad credit auto loans. Based on your current fiscal situation, you may also have to accept the fact purchasing a high mileage, low priced auto is your only option.

There is a proverbial silver lining here.

The lower the price of the car, there is an increased chance of approval since the amount of money sought on the loan is minimal. If you are able to make a very good down payment on an already low priced vehicle car, the bad credit loan you seek is pretty nominal.

A Positive Impact on Your Finances in Two or Three Years

Settling for a car that is not your first choice might only be a brief inconvenience. Your credit might be poor at the present moment, but circumstances are prone to change in the near future.

Bad marks on a credit rating remain for 7 years. Once the two or three years have passed after the purchase of a used car, your credit score automatically improves provided you have done nothing to damage it and have paid down any owed debt. With an improved credit score, you become a better candidate to a new auto loan meaning you can buyer a newer and more preferable model.

To learn more, contact a company like Neil's Finance Plaza Inc. for more information and to ask questions.