Try these tips to get the best deal:
Have a down payment ready. Even if you have bad credit, you can get a better loan when you have a down payment of at least 10% of the car’s value. Don’t settle for the dealer’s high interest rates.
Dealers often make the majority of their profit from high-interest financing. Don’t fall into that trap. Search online at financial portals such as Billån 24 to compare rates and find the best deal.
Ask a friend or family member to co-sign the loan
One common way to secure a loan when you have bad credit in Sweden is to get a co-signer. Essentially, that means you’re using someone else’s credit to buy your car. The downside? They’re liable for the full amount if you can’t (or don’t) pay. And that can put a strain on your relationship.
Remember, the co-signer is on the hook if anything goes wrong. If things don’t work out, you could cause financial hardship for the people you care about. Weigh your options carefully before you ask a friend or family member to co-sign your car loan. A better option might be to save up a down payment. But if you do get a co-signer, make sure the math works by figuring out a written budget.
Work out a written budget before you buy
What’s the smartest way to make sure you can pay off your car loan on time? With a written budget. It doesn’t have to be complicated. You can create a budget in minutes with a pencil, paper, and a calculator. Just add up all of your bills and subtract them from your monthly take-home pay. Is there any left over? That’s the maximum amount you can afford for a car loan.
Get a longer term to lower your monthly payment
If you can almost afford that car payment, but not quite, don’t give up. Explore other options, like taking out a longer-term loan to reduce your monthly payment. Keep in mind that you’ll pay more interest over the life of your loan. But your monthly payment amount will be lower. And that can help put you on the road fast … even if you have bad credit.