Consumer Car Buying Advice Blog

It is possible to buy a new car even if you plan on financing it with auto loans for bad credit

If you have bad credit

If you’re reading this, there’s a good chance that you are one of a growing number of consumers with bad credit and you need a car. If that’s the case, the good news is that you’ve come to the right place. Through our bad credit auto loan web site www.autocreditexpress.com we have helped thousands of applicants just like you reestablish their car credit.

You can begin the process simply by filling out our online car loans with 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 you will be able to not only reestablish your auto credit, but by paying your other bills on time you can actually raise your credit scores at the same time.

More choices

It wasn’t that long ago that customers with bad credit had few choices when it came time to buy a new car. In fact, their choice was which used car appealed to them the most – a new car was simply not part of the equation. Now, in many cases, they can also browse the new car lot.

Here at Auto Credit Express, many of us have been in the bad credit auto loan business for more than 20 years. During that time, we have seen the number of banks that deal in bad credit new car loans grow from just a handful to more than a hundred. While many of these lenders are regional, this is still a significant difference. Not only do these banks cover a much broader spectrum in the market, they also compete with one another for business.

Before the recent recession, this competition had led to more competitive (relatively speaking) interest rates as well as a broader product offering. But even though lenders have tightened their loan requirements and generally increased their interest rates, many of the programs they offered before the recession have not changed.

Included in many of these programs is the ability to finance a new car. And while the lending requirements for bad credit  car loans are much stricter than for conventional loans, there are still many new car models that qualify for such programs.

Points to consider when purchasing a new car

There are certainly many benefits to buying a new car instead of a used one:

1.    All new cars come with factory-backed warranties
2.    Many of these new car warranties include free roadside assistance
3.    Many new cars come with the option to purchase warranty extensions that cover the entire term of the loan.
4.    In most instances, buying a new car means that you have the choice of colors and options.

There is also a downside to purchasing a new car and that has to do with the subject of depreciation. Most new cars depreciate at least 15% as soon as you drive them off the dealer’s lot. This means that much of what you are financing will be lost to a drop in value of your new car. The fact is, unless you put down at least 20% of the selling price, chances are you will be “upside down” in the loan for at least 2 ½ years of a 5 year loan. The period of negative equity also increases as the term of the loan increases.

The Bottom Line

Driving around from dealer to dealer can be a time consuming, wallet-draining experience. If you have bad credit, it can also be embarrassing and discouraging, especially if the dealers you visit can’t get you financed. But there is hope and this is exactly why we founded Auto Credit Express. Our national network of affiliate dealers specializes in bad credit car loans and, since our inception, we have processed over 2 million applications 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, Bad Credit, car credit, credit, credit score, credit scores, new car, New Cars, tote the note

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