Consumer Car Buying Advice Blog

While, in many cases, bad credit car loan customers will not have a choice, there are a number of situations where you may have to decide between a new car and a used car.

The choice is not as simple as it used to be

There are many of us at Auto Credit Express that were around and, in many cases, in the car business in the mid 80’s. Back then, give a choice of a new or used car, there was no question that most of us would choose new. Build quality was something only the Japanese had a handle on and, besides, most used car service contracts were sketchy at best.

In today’s market, many certified used vehicles have warranties that rival that of their new vehicle counterparts. Build quality has reached a point where many domestic models are equal to or even surpass those from the far east. Even the up and coming Koreans – long known for their low prices – are assembling world class cars. In addition to the quality, most of the used cars in today’s market are also very reliable and, with normal upkeep, can be expected to be driven in excess of 100,000 miles or more.

What this means for the bad credit car buyer

Depending on your credit history, FICO score, and the kind of payment call that you get from a lender, you may have the choice of a new or used car. Keep in mind, though, that if you are only able to purchase a used car, there are still many advantages to this choice.

The advantages of a new car

Aside from that new car smell (which you might end up paying dearly for), the advantages to buying a new car are obvious. All of them come with a factory warranty. In many cases, this warranty also includes such amenities as roadside assistance and telematics programs (such as GM’s OnStar). In addition to the standard warranty, you can also purchase a “wrap around” warranty that will extend the new car warranty (or portions of it) through the balance of the finance period.

The advantages of a used car

Of all the advantages of buying used cars, the biggest one has to do with the “D” word – as in depreciation. Most new cars depreciate 15%-20% the first year. It’s not uncommon for a car to lose 60% of its value in 5 years. Buying a 2 or 3 year old car (many with a portion of the original factory warranty remaining) will save you thousands of dollars in initial costs as well as finance charges. Many service contracts are now backed by the manufacturers, while certified used vehicle programs, while pricey, offer many buyers additional peace of mind.

For more information, visit www.autocreditexpress.com

Here at Auto Credit Express, we specialize in helping customers with bad credit get a car loan and begin the process of reestablishing their car credit. Our web site, www.autocreditexpress.com, will walk you through the process of applying for a loan by using our secure car loan application. With pages devoted to research as well as FAQ’s, we will try and answer all your questions. If you can’t find the answer on one of these pages, we have customer service representatives that are more than happy to assist you during normal business hours (8:30am – 5:30pm Eastern Standard Time), and you will find our toll-free number at the bottom of each web page.

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