Have you recently found yourself watching the mileage on your car rise to a somewhat scary level?
Has your car begun to fall apart piece by piece, meaning it is now costing you a small fortune to keep it on the road?
This situation can ring alarm bells for most people, but it can worry you even more if you have some bad credit in your recent past and you know that the only way you’re going to be able to buy a new car is with the help of some sort of finance agreement.
If the above scenario is sounding familiar to you right now, the good news is that there are things that you can do to prepare for the worst. If all else fails, there are also financial options available to you, even if you’ve had a bit of a chequered financial past.
Useful: https://www.moneyadviceservice.org.uk/en/articles/car-finance-explained
Preparing for the Inevitable
Image Source
If there is one thing that is certain it is this, when you have a car that is hanging on by a thread, this car will eventually die. Sorry to be the one to break the news to you but someone had to, didn’t they?
So rather than ignoring the problem, are there things that you could be doing now to lessen the financial impact when the time comes? Could you start putting away £10 or even £20 a week, for example, so that when your car does come to a sad end, you have a chunk of cash available to put towards another one?
Another thing you could do is to get hold of a copy of your credit report to find out just how bad your credit history really is. You might even find that things are not quite as bad as you thought they were.
Maybe there are some errors on your report that are dragging your credit score down. You might be able to get these errors fixed to give your score a boost!
You can also do you utmost to maintain your financial commitments from now on, so that your credit score may improve enough to buy a new car with a standard car finance arrangement when the time comes for you to replace your vehicle.
Useful: https://www.moneyadviceservice.org.uk/en/articles/emergency-savings-how-much-is-enough
You Still Have Options
Image Source
If after reading the above paragraphs you still feel that you are going to have difficulties buying a new car when you need to, then at least you can take solace in the fact that there are still finance options available for people who don’t have a particularly stellar credit rating.
Bad credit car finance is available online, for example. The companies who offer this kind of finance will take a look at your credit history and will offer you an interest rate on a car finance arrangement that will take your credit history into account.
The rate you are offered may be higher than you would usually be offered, but if it’s the difference between you having a car on the road and not, then it might be worthwhile for you to consider this option.
Main Image Source
