Consumer Car Buying Advice Blog

Here at Auto Credit Express, we recommend that, if you are purchasing a vehicle with a bad credit car loan, you also seriously consider a service contract. Why would we do that? For most people with limited income and bad credit, purchasing a vehicle stretches a budget that is already tight. Why, then, should you spend the extra money, and increase your monthly payment, by buying a service contract?

Peace of Mind

I know that you’ve heard these words before, but a service contract is much like an insurance policy. When you buy one, you are betting that your car is going to break, while the service contract company is betting that it won’t. Which side of the argument would you bet on?

Even though today’s cars are more reliable, they are much more complex. Computerized engine management systems and safety systems make your car more fuel efficient and safer, but when something goes wrong with them, they are much more expensive to repair.

Your Budget

Which brings us to a second point: isn’t it easier to plan on spending an extra $25 a month, every month, on your car payment than having to come up with $300 – right now - to replace an electronic part on your car in order to get it running so that you can drive to work?

The Bottom Line

The tighter your budget, the more important it is to avoid unexpected expenses. Do yourself a favor and avoid a situation that could impact your ability to repay your loan (if you can’t get to work, you can’t pay your expenses). Seriously consider a service contract if you need to finance a car with a bad credit car loan. You will find that it is well worth the expense.

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