Bad credit car loan Washington | Bad credit Car loans for te
by EARNEST YOUNGE
Regardless of where you live in the US you should be feeling by now the effects of the credit crunch. Having bad credit or little credit at this juncture can be a real pain when it comes to getting a good car loan, specifically when you are a teenager or a minority. Here are some basic rules for buying a car with bad credit if you are a teen or minority in Washington State.
Get the Best Car for Teens
If you are a minority in the market for a car loan in Seattle, Tacoma, Bellevue, Bremerton, Silverdale, Oak Harbor, Shelton, Olympia, Mount Vernon, Anacortes, Port Angeles, Centralia, Portland, Vancouver, Ellensburg, Longview, Aberdeen, Bellingham, Spokane, or in Pullman Washington Sate
This year��s number of high school graduates is the biggest since the late 1970��s. Celebrating graduation usually includes a car purchase. The number used vehicle desired by 16 to 25 year old drivers is the Ford Mustang; the number 2 is the Jeep Wrangler followed by Honda Civic.
However, according to the Insurance Institute for Highway Safety, you should not buy these cars for teenagers. The IIHS consistently recommend that teen drive cars that are large, low and slow and are low in maintenance and insurance.
Look for a Mid-size vehicle that isn��t too old and fuel efficient and has front and head-protecting side airbags �C as well as stability control. Stay clear away from SUVs and pickups and please don��t buy a sport car or a high performance vehicle.
Are You a Minority? Know Your Rights
If you are a minority in the market for a car loan in Seattle, Tacoma, Bellevue, Bremerton, Silverdale, Oak Harbor, Shelton, Olympia, Mount Vernon, Anacortes, Port Angeles, Centralia, Portland, Vancouver, Ellensburg, Longview, Aberdeen, Bellingham, Spokane, or in Pullman Washington Sate you must be extra careful. On 2004 loans for new-car purchases, blacks paid a median interest rate of 7 percent �� compared with 5 percent for white borrowers and 5.5 percent for Hispanic borrowers. On used car loans, African Americans and Hispanics both received considerably higher interest rates. The median rates for African Americans and Hispanics were 9.5 and 9 percent respectively, compared with 7.5 percent for whites.
The CFA found that more African Americans paid auto loan rates of at least 15 percent. For new-car loans, 6 percent of African American borrowers paid 15 percent or more, compared with 1.7 percent for whites and 1.8 percent for Hispanics. On used-car loans, 27 percent of black borrowers and 18.5 percent of Hispanic borrowers paid 15 percent or more, compared with 9.2 percent of white borrowers, the analysis found.
Therefore, if you are a minority, black or Hispanic or from another ethnic background, double check your FICO score. You can get a free credit report from credit.com. Know your rights, do your home work and go to the dealership ��armed with information
