Get approved for finance
When looking to get a car with bad credit, you should look for approval for bad credit car finance first. Lenders often have different criteria for vehicles that they will lend on. If you get approved first it will save you time wasted looking at vehicles that a lender won’t finance. You also know the maximum amount a lender will let you borrow, which gives you your vehicle price range.
You can apply for bad credit car finance through Red Potato even if you;
- Are in a Debt Management Plan (DMP), Trust Deed or Individual Voluntary Arrangement (IVA)
- Have a County Court Judgement (CCJ)
- Previously have been bankrupt
- Are self-employed
Find a reputable dealer
Many car finance providers will only lend money on a car that you are buying from a reputable dealer. Very few will lend on a vehicle from a private seller, particularly if the type of finance is hire purchase. Most lenders will require the dealer to be VAT registered and authorised by the Financial Conduct Authority.
Through our own network of trusted dealers, Red Potato can arrange finance for almost 4,000 vehicles, so you can be safe in the knowledge that we can provide finance for every car on the site.
Choosing the right car
Once you are approved by a lender and have found a reputable dealer, you can find a car within the lender’s criteria. Most lenders’ criteria will cater for the majority of vehicles on sale at good dealers, but it’s good to make sure you know it to avoid disappointment and save time.
At Red Potato, our criteria is simple, the car only needs to:
- Have a mileage of less than 100,000
- Be under 7 years old.
One thing to be aware of is the valuation of the car, and the method the lender uses to value the car you intend on buying. To make sure you’re getting a fair deal, most lenders will agree to finance a car based on an external valuation by a 3rd party. This is often done instantly once you inform the lender of the vehicle you wish to buy and it’s current mileage. Usually the valuations are similar, but it acts as a good safety net if you’re unsure of a car’s value.