How to Organize Car Financing (Whatever Your Circumstances)

Few people can afford to pay the full cost of a car, so that’s when financing comes into play. Take a look at our guide to getting the best car financing, whatever your credit rating.

The Golden Rule of Financing

Although it’s tempting to look at the ‘price per month’ and assume you can afford it, always work out whether you can afford the payments. Look at your monthly outgoings and in-comings, and see how much remains at the end of every month. If the sums don’t add up, don’t panic – just look at another vehicle. There is something perfect that will work within your budget out there waiting for you.

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Are Low Monthly Payments the Best Option?

If you opt for a longer term to pay off the loan, payments will be lower but you will pay more in the long term thanks to the interest that builds up. But it might be worth it in order to have the car you really want. Opting for a loan that you can afford to meet, that you’re not still paying when the car is struggling to stay on the road, is the best choice.

How to Find the Right Car Loan

If you’re shopping around for a car loan, do it within a two-week period. Every time you apply for a loan (whether you use it or not) your credit rating goes down. But if you do all your research within two weeks, they only count as one enquiry.

If you are approaching a lender face-to-face, make them aware that you are shopping around for the right car loan. This might encourage them to offer you a better rate. Buyers who have a good credit rating shouldn’t be afraid to point this out to the lender.

At TRED, we have a direct partnership with Autopay. If a buyer wants to use our “in house financing”, this is who they are directed to. Autopay sends the buyer’s application out to all of their lending partners to obtain the best rates for our customer.

If a buyer wants to buy a car through TRED and use their own financing, it’s just as easy because the buyer already has a relationship with their credit union or bank. We simply send the lender a purchase order and the bank/credit union issues the customer a check. Easy!

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What About Car Buyers With a Poor Credit Rating?

We have good news! A bad credit rating doesn’t mean you can’t secure car financing, and it doesn’t necessarily mean you’ll be hit with crippling loan terms.

The most important step to take if you have a bad credit rating and want a car loan is to shop around. The average rate for borrowers is around 4% to 5%, while subprime borrowers pay about 10% to 13%, depending on their score.

At TRED, we provide financing for the entire credit spectrum. Through our partnership with Autopay, all of our customers enjoy instant access to market-best car financing. From subprime to super-prime, our network ensures that all our customers get the best rate.

One More Thing…

Always read the fine print. If you don’t understand the jargon, ask a knowledgeable friend, family member, colleague, or conduct your own research on reputable websites. Keep an eye out for these phrases:

  • Mandatory binding arbitration This removes your right to go to court.
  • Variable interest rate The interest rate will change over time. If you can’t afford the highest possible payment, you need to find another loan.
  • Prepayment penalty If you want to pay off the loan early, you will have to pay a penalty. If you intend to sell before the loan ends, it’s important to know this as you’ll be hit with a fee.

Taking the paperwork home to read in your own time before signing is advisable. If the dealer doesn’t allow that, the best idea is to find another lender. Knowing exactly what you’re signing up to for the next few years is essential!

If you have any questions to ask the team at TRED about car financing, please get in contact. You can email us here or chat online to a member of the team in real-time through our website.


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