Kelley Blue Book (KBB) is predicting an increase in incentive offers from all major automakers in the United States. The lower selling prices that will result from these incentives should allow more buyers with poor credit to get approved for new car loans.
How is that, you may ask. Subprime auto loans are often only made on lower balances. So, if you want a new car, you need to look at less expensive models. Poor credit auto lenders usually require a down payment of 15-20%. Lower prices will make it easier for you to save the down payment and get your new car sooner. Here are a few things you should do before applying for a subprime auto loan.
- Pull your credit report and score. Fix any incorrect information.
- Decide on what car you want and research its average selling price in your area.
- Put together a down payment of at least 15% before applying for a loan.
- Secure financing before you go to the dealership.
Knowing what is going on in the automotive industry will help you get the best possible deal on your new car. The incentive war that KBB is predicting will only help you get a subprime auto loan. Good luck with your new car.