Consumer Car Buying Advice Blog

There are more things to consider than just the price of the car and its corresponding monthly payment especially for bad credit car loan buyers

On the road to better credit

At Auto Credit Express, our business is to help you find the right dealer that can help you improve your fico score by helping you get your car credit reestablished with a bad credit car loan. Once you get this kind of a loan, it’s essential that you make your car payments on time. But sometimes buyers forget that there are more expenses involved than just the payment.

Full coverage insurance

A major expense that many bad credit customers fail to include is the cost of full coverage car insurance. Even if you had insurance on the vehicle you were driving before you qualified for your bad credit car loan, it may very well have been low cost partial coverage insurance. When you finance a car, the lender will require that you carry full coverage insurance. In addition, the car you replaced is probably older and insuring a new or newer car can be much more expensive (it’s always a good idea to check with your insurance agent before you purchase a vehicle to determine how much your rates will go up).

Fuel costs

That sport utility vehicle sitting on the car lot may be your dream car, but in addition to being more expensive than a sedan or a minivan, it also has poorer gas mileage. If you buy a midsize or compact car, you will save on gas as well as reduce your monthly loan payment.

Maintenance costs

If the lender approves you for a new car, check the warranty. Make sure the new car warranty covers the entire length of your finance contract. If it doesn’t, consider purchasing an extended warranty and be sure to add that cost in as part of your monthly payment. If you’re buying a used car, a service contract is almost a “must have” addition. Although you’ll need to budget for the increase in your payment, if some major component on your car breaks, you’ll be glad you have it.

The Bottom Line

Here, then, are some tips when it comes to the true cost of owning a car:

• Check with your insurance agent on the cost of full coverage insurance for the car you plan on buying. Compare that cost to other models in that same price range – this step could save you hundreds of dollars a year.

• Check the EPA gas mileage figures of the vehicle you’re looking at to similar models by using the agency’s fuel economy guide to determine your yearly gas budget and add it to your other vehicle expenses. Stay away from gas-thirsty SUVs and instead choose a passenger car or a minivan. Remember, an increase in gas prices could adversely affect your budget – especially if you’re driving a big truck.

• You might want to consider a service contract, especially if your budget would be stretched if you had to pay an unexpected repair bill.

Make sure you include all these items in your car budget. To help you determine what you can afford, you can also use our loan estimator worksheet on our web site at www.autocreditexpress.com.

Tags: auto refinance, car loan quote, chevrolet, credit score, free car loan quote, refinance

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