Consumer Car Buying Advice Blog

Both good credit customers and those with bad credit would do well to follow the advice of the finance industry group AWARE.

Auto Credit Express

At Auto Credit Express, we are in the business of helping customers with bad credit raise their FICO scores (credit scores) by financing a new or low-mileage used vehicle with a bad credit car loan – sometimes called a subprime car loan.

Although these bad credit car loans usually feature much higher than normal interest rates, if used correctly the process can result in a higher credit score, a reestablishment of car credit and, ultimately, the ability to finance a car at competitive interest rates.

Buying advice

Although we usually write our finance articles and give recommendations based on our own experience, every once in a while information from other sources comes along that we believe might be helpful to bad credit car loan consumers and today this is the case.

The auto industry group AWARE (Americans Well-Informed on Automobile Retailing Economics) was formed to promote the education of consumers as well as the practice of financing through retail automobile dealerships. AWARE recently published the following list of tips. And although these tips were for “American workers considering getting another vehicle”, we felt that these suggestions could apply to all car shoppers so we are listing them along with some notes of our own:

• Determine how much you can afford based upon your needs and financial situation, and stick to that amount. (At autocreditexpress.com/resources/calculators/, bad credit car loan customers can do a number of things including payment calculations and loan comparisons)

• Know the difference between leasing and buying. While leasing typically provides lower monthly payments, you do not own the vehicle. You get to use it, but must return it at the end of the lease unless you choose to buy it at that time. (Bad credit car loan customers will generally not be given the choice of a lease. That being said, buying will enable you to build equity in a vehicle so that it can be used as a down payment on your next loan.)

• Research what vehicles in your price range meet your needs. (For bad credit customers, this is especially important since the key to a bad credit loan is an affordable vehicle.)

• Compare rates and financing terms from several different lending sources to find what best meets your needs. (For bad credit customers, this is not as much of an option, although the Special finance Manager can help determine what the best terms will be if a bad credit customer is approved by more than one lender)

• Become familiar with common vehicle financing terms. (For bad credit customers, Auto Credit Express has a wiki site at carloanwiki.com)

• Negotiate your finance arrangements and terms. Don’t hesitate to walk away from an offer that won’t work for you. (For bad credit consumers, terms may be less flexible, but you shouldn’t accept a deal that you cannot afford.)

• Read the contract carefully and make sure all blanks are filled in before signing it. (You should always thoroughly study any finance contract before signing it. )

• Once you’ve financed or leased a car, make your payments on time, as late or missed payments incur late fees and appear on your credit report, which can impact your ability to get credit in the future. (For bad credit customers, this is especially critical)

• If you experience financial difficulty, contact your creditor immediately. Repossession can occur if you fail to make timely payments. Vehicle finance companies want to work with you so you can fulfill your financing obligations and reclaim firm financial footing. (Ditto for bad credit car loan customers.)

The Bottom Line

At Auto Credit Express, we’ve helped a lot of people with bad credit raise their credit scores and reestablish their car credit with a bad credit car loan. If you have any additional questions, please visit our web site at www.autocreditexpress.com. Our Resources section is the place to visit if you have any more questions about the process and, unlike other sites, our toll free number is listed on every page in case you have any additional questions.

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