Consumer Car Buying Advice Blog

By adhering to a few simple rules you can save hundreds of dollars or more when it comes time to finance either a new or used car with poor credit car loans

We have seen it

In most cases, people with bad credit want to go through the terrible credit auto loans process as affordably as possible.

We’ve seen this in practically every case in the nearly two decades we’ve been involved in bad credit auto sales here at Auto Credit Express.

We also created a web site that tells applicants why a tote the note dealer won’t help their credit scores and we cover the bad credit auto loans process so they can stay clear of many of the issues that result in repossession.

This is because taking out a loan with lenders that offer horrible credit auto loans can create problems if you don’t know what you’re doing  – setting your credit repair efforts back even further.

Issues with bad credit auto loans

Working with applicants on a day to day basis, we hear stories about how they’ve gotten themselves into trouble by entering into a sales contract that they can’t repay. What is unfortunate is that if they had followed some simple guidelines, they wouldn’t find themselves in the predicaments they’re in.

Know your FICO scores

Even before you visit the dealer, you should know what your credit report looks like and what at least one of your FICO scores is. If your credit score is above 640, chances are you can get a car loan with a conventional lender such as a bank or credit union. If it’s below 640, you’ll probably have to apply for a bad credit auto loan. Since the bad credit buying process is different, knowing both your credit score and what’s in your credit report can be all-important.

Budget and research

The next step is to figure out your car budget. This should include the cost of fuel as well as full coverage car insurance. In addition, research the vehicles you’re interested in by visiting web sites such as consumerreports.com. This can help you determine which vehicles are the most dependable while also showing you new car dealer costs in addition to sticker prices. You can also check out any rebates or customer cash on the models you are interested in.

Backend products

Dealer backend products are additional choices you have that are offered by the dealer finance manager. Of these, gap insurance makes sense if you are taking out a 60-72 month loan with less than 20 percent down. A reasonably-priced extended warranty is also a good investment if you’re buying a used car or financing a new one beyond its new car warranty period.

But you should stay away from window etching, rust-proofing and paint protection as these are always a waste of money – adding little or nothing to the value of a car. Besides, you can do most of them yourself for a fraction of the cost.

Choosing a dealer

Check with your friends, co-workers and the Better Business Bureau web site before visiting a dealer to find out their reputation for fairness in dealing with new and used car customers.

If you have bad credit, we also suggest that you visit a web site such as ours at www.autocreditexpress.com

As we see it

To avoid a bad car loan experience, know your credit score and your budget. Do your research on the internet and decide which model and options best fit your needs.

If you have bad credit, you should know that you probably have more options than you realize. Before going to a tote the note car lot, remember that they don’t report to the credit bureaus and getting a car there won’t help repair or establish your auto credit.

Auto Credit Express helps individuals with bad credit find a dealer that can arrange financing for a bad credit car.

So if you’re serious about getting your car credit back on track, you can start now by filling out our online auto loans application.

Tags: Bad Credit, bad credit auto sales

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