Consumer Car Buying Advice Blog

The first step in the process of getting a used auto loan is to check your credit report. Once you’ve done that, the next step depends on your FICO score.

It’s a numbers game

Here at Auto Credit Express, most of us have been in the car business for at least 20 years. Now, more than ever, we know that the FICO score will establish what kind of used auto loan a customer will qualify for. If your credit score is over the 640-660 range and you have an established credit history, then there’s a fairly good chance that you will qualify for conventional financing. If you have a score below 640 or your credit history is fairly new (and no co-signer), then you will probably have to finance your car with a bad credit car loan. More on that later.

Used Cars – no longer just for customers who can’t afford a new one

But first, let’s get one thing straight: buying a used car is no longer just for those buyers who can’t afford or can’t qualify for a new vehicle loan. There are a number of reasons why used auto loans and buying a used car makes sense:

1. Depreciation – New cars depreciate anywhere from 10% to 20&% the first year and from 10%-15% the second year. Buying a 2 year old car will save you from 20% to 35% off the price of a comparable new model.

2. Warranties – Many new cars come with full warranties that cover 5 years and up to 100,00 miles that are fully transferable to the new owner. If you buy a used car that is still under new car warranty, you can usually save money on an extended service contract when you purchase one from the vehicle manufacturer.

3. Certified Vehicles – Most manufacturers offer a certified used vehicle program. Although prices on these cars are generally much higher than regular used cars, the peace of mind that they offer may be worth the difference in cost.

4. Quality – Today’s used cars offer the highest quality in history and most are designed to last for at least 200,000 miles (with the proper maintenance).

Check out Auto Credit Express for Used Auto Loans with Bad Credit

If your FICO score is below 620, you will probably need to get a subprime used auto loan. The good news is that here at Auto Credit Express, we specialize in helping people with credit problems get approved for new and used car loans. What’s even better is that once you’re approved, each month you make your car payment, you’re rebuilding your credit score and reestablishing your financial future.

For more information, visit our web site at www.autocreditexpress.com. Let us explain the benefits of getting financed with us. Once you’ve made a buying decision, you can fill out our secure car credit application online in the comfort and privacy of your own home. Remember, here at Auto Credit Express, we want you “on the road” to better credit.

Tags: ford

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