Bad Credit Car Loans and the Used Car Buyers Guide
by Steve Cypher on Saturday, June 5th, 2010Car loans with bad credit buyers should understand and know how to interpret the used car buyers guide that must be on the window of every used car sold by a licensed dealer.
Repair your credit
If you’re reading this, there’s a good chance you have bad credit and you need a car. Fortunately, bad credit auto loan web sites such as ours at www.autocreditexpress.com have helped thousands of applicants just like you reestablish their auto credit. You can begin the process simply by filling out our online auto loans for bad credit loan application. By avoiding a tote the note dealer and qualifying for a second chance auto loan at one of our affiliate dealers. By doing this you will not only be reestablishing your car credit, you will be able to raise your credit scores at the same time as well.
But you need to be careful. A car that’s too expensive can stretch your budget and result in repossession. If this happens, the only remaining choice for most bad credit auto loan buyers is a Tote the Note, We Finance Everyone car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that’s more than a year old.
With that in mind and with the cost of new vehicles rising every year, most credit-challenged individuals that fill out a bad credit car loan application and get approved decide that it is much more affordable to reestablish their auto credit with a 2 or 3-year-old pre-owned vehicle. With the quality and durability of vehicles at an all-time high, this decision makes sense.
Now those same consumers need to be able to read and understand the Used Car Buyers Guide that is affixed to the window of every used car in a dealer’s inventory.
Used Car Buyers Guide
The Used Car Buyers Guide is the form that you see in the window of a used car sold by a dealer. It displays important purchasing and warranty information. The form must display the following information:
• whether the vehicle is being sold “as is” or with a warranty;
• what percentage of the repair costs a dealer will pay under warranty;
• that oral promises are difficult to enforce;
• to get all promises in writing;
• to keep the Buyers Guide for reference after the sale;
• the major mechanical and electrical systems on the car, as well as some of the major problems that consumers should look out for; and
• to ask to have the car inspected by an independent mechanic before they buy.
If the seller conducts used car transactions in Spanish, a Spanish language Buyers Guide must be posted on the vehicle. Even if the vehicle is not fully prepared for delivery, the guide must be posted on the vehicle before it is shown to a customer. It also must be posted in a visible place – window, inside mirror or windshield. It also must be filled in with the vehicle make, model, model year and vehicle identification number (VIN). The back of the guide displays the name and address of the dealer as well as the name and telephone number of the person who should be contacted with complaints.
What the FTC has to say
On its web site, the FTC has this to say about the contents of the Used Car Buyers Guide:
When shopping for a used car, look for a Buyer’s Guide sticker posted on the car’s side window. This sticker is required by the FTC on all used cars sold by dealers. It tells whether a service contract is available. It also indicates whether the vehicle is being sold with a warranty, with implied warranties only, or “as is.”
• Warranty. If the manufacturer’s warranty is still in effect on the used car, you may have to pay a fee to obtain coverage, making it a service contract. However, if the dealer absorbs the cost of the manufacturer’s fee, the coverage is considered a warranty.
• Implied Warranties Only. There are two common types of implied warranties. Both are unspoken and unwritten and based on the principle that the seller stands behind the product. Under a “warranty of merchantability,” the seller promises the product will do what it is supposed to do. For example, a toaster will toast, a car will run. If the car doesn’t run, implied-warranties law says that the dealer must fix it (unless it was sold “as is”) so that the buyer gets a working car. A “warranty of fitness for a particular purpose” applies when you buy a vehicle on a dealer’s advice that it is suitable for a certain use, like hauling a trailer. Used cars usually are covered by implied warranties under state law.
• As Is – No Warranty. If you buy a car “as is,” you must pay for all repairs, even if the car breaks down on the way home from the dealership. However, if you buy a dealer-service contract within 90 days of buying the used car, state law “implied warranties” may give you additional rights.
Some states prohibit “as is” sales on most or all used cars. Other states require the use of specific words to disclaim implied warranties. In addition, some states have used car “lemon laws” under which a consumer can receive a refund or replacement if the vehicle is seriously defective. To find out about your state laws, check with your local or state consumer protection office or attorney general.
As we see it
A used car can be a smart and affordable alternative to a new vehicle for anyone – but it can make an even bigger difference if the financing source is a bad credit auto loan.
At Auto Credit Express we have helped thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.
So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.
Tags: auto credit, auto loan, bad credit, car credit, car loan, credit, ftc, repossession, service contract, tote the note, used car, used car buyers guide
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