If you have problem credit the car you end up picking out can often be vital to successfully finishing an auto loan
Buying a Car with Bad Credit Tips
We understand the process

For consumers with questionable credit choosing not just the right vehicle but also the right kind of vehicle can be critical to accomplishing the goals of completing a car loan while reestablishing their auto credit.

At Auto Credit Express we understand how important this can be because we've spent the last two decades helping car buyers with poor credit find those dealers that can give them their best opportunities for auto loan approvals.

It's also the reason our website offers car shoppers much more than just an application. Because experience has taught us that informed buyers have a much greater chance at credit repair success.

With that in mind, we present one of the more important entries on our "buying a car with bad credit tips" list:

Know your budget and what it will buy

In too many instances, consumers with credit problems come to us with visions of financing a, van, large sedan, or even a full-size SUV.  But even if they qualify for something like this (most, in fact, will not), picking out one of these types of vehicles can lead to big problems later on.

In most cases, car buyers with bruised credit won't qualify for larger and more expensive vehicles because of the higher than normal interest rates charged by high-risk lenders. This puts the monthly payment level of these cars at or, more often, over the budget limits of most buyers.

Not only that, but the higher auto insurance rates and poorer fuel economy add even more to their costs of ownership.

Still think they're the right kind of vehicles for you?

Okay, how about the opinion of a third party? Recently, the American Automobile Association had something to say about it:

AAA survey

According to the most recent AAA survey, fuel costs are among the most important items that lead to increases in vehicle operating costs. Based on 15,000 miles per year, this is what the organization has determined are the average costs of operating a vehicle based on its size and type:

Small sedan – 43.3 cents per mile or $6,496 per year
Medium sedan – 56.2 cents per mile or $8,436 per year
Minivan – 62.0 cents per mile or $9,301 per year
Large sedan – 70.2 cents per mile or $10,530 per year
4WD SUV – 73.9 cents per mile or $11,085 per year

Note: These costs take into consideration fuel, depreciation, tire and auto insurance expenses.

Year over year changes

The report also noted that after the overall operating costs were computed "The small sedan category experienced the smallest increase of the five categories of vehicles, rising only 2.9 percent from last year to 43.3 cents per mile or $6,496 per year, based on 15,000 miles of yearly driving. The minimal increase was primarily due to the increased popularity of small sedans led by higher fuel prices. It resulted in the small sedan category being the only one where depreciation costs were lower than last year, falling 1.9 percent."

This means that buyers, regardless of their credit scores, can save over $2,000 a year simply by picking a small car over a midsize sedan – a savings that could be used lower the payment, shorten the loan term or free up cash to pay other bills.

The Bottom Line

Financing a vehicle if you have damaged credit means taking a closer look at what you need, rather than what you want. This means being practical and financing a less expensive car that's also cheaper to operate. Doing this will also make it easier to make your monthly payments on time and possibly decrease the loan term so that in a much shorter time you'll qualify for a new loan at a lower interest rate.

One more thing to keep in mind: Auto Credit Express specializes in helping applicants with bruised credit find those dealers that can give them their best chances at approved auto loans.

So if you're ready to reestablish your auto credit, you can begin now by filling out our online auto loans application.