One of the keys to successfully completing an auto loan for consumers with questionable credit includes a thorough used car inspection if they plan on purchasing a pre owned vehicle
What a good car loan really means
Car buyers that have experienced problem credit will typically choose to finance a used car because typically they’re less expensive than a new vehicle. But once they’ve picked out the one they want the next step they take should be to contact a used car inspection company.
Here at Auto Credit Express we understand the importance of this “next step” because we’ve spent the past twenty years helping consumers with questionable credit find those new car dealers that can offer them their best opportunities for car loan approvals.
It’s also why we tell applicants, when they ask us how to get a good auto loan, that a “good auto loan” is really one that they can complete successfully. It should also be done with a lender that reports loans and payments to the credit bureaus – unlike those offered at small independent car lots by BHPH dealers.
But back to today’s subject which is used car inspections:
Finding hidden problems
One reason credit-challenged car buyers find themselves in trouble after signing up for an auto loan is experience vehicle problems down the road. In many cases this is due to the fact that that they really didn’t know the true condition of the used car they were buying.
Obtaining a vehicle history report (VHR) from Carfax or AutoCheck is a good start but this should be merely the first step – if for no other reason than these reports depend on outside sources for accuracy. For example:
• If a vehicle was involved in an accident but it wasn’t reported to the police, it may not show up in these reports
• If the vehicle was damaged but an insurance claim wasn’t processed, there’s a good chance it won’t appear in these reports
• Even if an insurance claim was made, if the insurance company doesn’t report it there will probably be no record of it
• If an insurance claim wasn’t made and the body shop where the vehicle was repaired doesn’t report it, there probably will not be a record of any damage
One more thing to keep in mind: even though a VHR might be able to present an accurate history of a particular car, none can tell you the current condition of any vehicle or its component systems.
That’s kind of scary, isn’t it?
With that being said, you can understand why a pre-purchase inspection is necessary when buying any used car.
Before even requesting an inspection, check the VIN number on the title against the VIN plate on the vehicle (the VIN plate is visible in the lower driver-side corner of the windshield) to be sure they match. Next, check the title for words such as “reconditioned”, “salvage”, “flood damage”, “theft recovery”, “stolen”, “miles unknown” or “odometer miles exceed mechanical limitations.”
If you notice a discrepancy in the VIN numbers or any of these notations on the title, at the very least you should pick another car. You may even want to choose another dealer, as misrepresenting a vehicle by not informing you of its true condition is considered to be fraud.
The next step in the process is paying to have an actual physical inspection done of the vehicle. Both mechanics and companies offer this service and it should be performed by an ASE Master Technician, someone who is certified in eight different areas including:
• Drive train
• Suspension and steering
• Electrical and electronics
• Heating and air conditioning
• Engine performance
The vehicle should also be inspected by a Collision Repair Specialist (structural and non-structural analysis and damage repair) to determine the extent of any existing or previous accident damage.
It should also be pointed out that if the dealer doesn’t give permission to have any of this done, it’s in your best interest just to walk away from the deal.
The Bottom Line
If you’re purchasing a used car to repair your auto credit, it’s more important than ever to have it inspected before taking delivery.
It’s also important to remember that Auto Credit Express specializes in helping people with credit problems find a dealer for their best chance at receiving approved car loans.
So if you’re serious about getting your car credit back on track, you can begin now by filling out our online car loans application.