Consumer Car Buying Advice Blog

Twenty years ago if you wanted a dependable car you bought a new one. Now bad credit car loan customers have more of a choice and the decision is not as simple as it used to be.

New versus used cars

At Auto Credit Express, back when many of us began our careers in the retail automobile business more than 20 years ago, the decision of whether to buy a new or used car was fairly easy. If you wanted to be sure that your next car was reliable, you bought a new car. New cars came with a warranty that covered pretty much everything on the car for at least the first three years of ownership. This meant that for most problems, except for normal “wear and tear” items such as wiper blades, light bulbs and, of course, tires, the manufacturer would pay for anything that failed.

Buying a used car, on the other hand, was a little like going to Las Vegas and pulling the lever on a slot machine. Sometimes you came up with three cherries and a very dependable car. There was always the chance, however, that you could come up with at least one lemon and inherit the problems from the previous owner.

The buying experience was also different. New cars were sold inside showrooms that were designed to highlight the excitement and beauty of the particular model that you were looking at. But if you went shopping for a used car, chances are that you were forced to shop on small open-air lots from salespeople that knew little about their inventories other than “she runs great” or “this one’s real cream puff”.

Certified used cars

Since the early 90′s, new car dealers as well as the manufacturers have recognized the importance of the used vehicle market. Beginning with the luxury brands, manufacturers began entering into the market with “certified” used vehicle programs.

The certification process begins with a lease turn-in or other recent trade-in vehicle that falls within the manufacturer’s mileage and age guidelines. If the vehicle meets the initial qualifications, it then undergoes the manufacturer’s mandated inspection process. Once it passes inspection, the dealer can place an additional warranty on it that essentially extends the vehicle’s new car warranty for up to 7 years or 100,000 miles, depending on the vehicle and the manufacturer.

The internet

Other forces have also come together to change the used car market. The internet, for one, lets you choose vehicles from practically any dealer in the United States. Not enough Honda Insights in your state? Check out California! No black Cadillac Escalades in New Jersey? Check out Texas!

The issue of vehicle history has also been addressed. Remember the salesman that knew nothing about the car? Companies such as Experian (with their Auto Check report) will, for a fee, furnish you with a vehicle history report that includes an accident check, mileage accuracy check and warranty check along with vehicle history details.

With the growing number of vehicles that have been subject to title washing and odometer fraud, the government has even stepped in with its own national database, called NMVTIS (National Motor Vehicle Title Information System), although only 13 states are currently fully participating in the system, with 12 more states in development and 14 states providing data only.

The vehicles

Finally, the cars, themselves, have changed. Build quality has improved greatly so that 100,000 mile cars, with the proper maintenance, still have the capability to drive well mechanically. Advances in corrosion resistance also mean that the car body is still capable of being structurally sound. Even 200,000 miles on a vehicle does not necessarily classify it as a clunker, as would have been the case 20 years ago.

The decision

So what should bad credit car loan customers do? That depends on what you are looking for. A new car is still a new car. It will definitely have a warranty. All the parts and vehicle systems will be new and, therefore, not prone to fail as easily as on a used vehicle. The tires are new, the carpets are new and the technology (safety systems, audio systems, etc.) is new.

Used cars, on the other hand, benefit from the increase in quality that all manufacturers are focusing on. Since a car depreciates in value, and the highest portion of that depreciation occurs in the first two to three years, the price you pay for a “newer” used car will be a much better value than a comparable new car.

The bottom line is that in terms of value, buying a used car is much less of a gamble, and much more of a viable alternative, than it used to be.

Tags: auto loan, Bad Credit, car loan quote, chevrolet, chevrolet aveo, credit score, free car loan quote, kia, kia rio, kia spectra, nissan, second chance car loan

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