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How to Buy a Used Car with Bad Credit

Experts from the service contract industry offer a number of tips on what to look for with new and used car warranties that could prove to be helpful when car buyers with poor credit sign up for an auto loan
How to Buy a Used Car with Bad Credit
Our experience

One of the better choices offered to most car buyers with problem credit is the chance to add a service contract to their auto loan, especially if they’re considering is a used car.

We certainly feel that way here at Auto Credit Express, where we’ve been helping consumers with questionable credit searching for online car loans find those dealers that can offer them their best opportunities for approved car loans.

Service contract tips from SCIC

Not long ago, the Service Contract Industry Council (SCIC), an industry group of providers and administrators that represents nearly 80 percent of all “appliance, consumer electronics, home, and vehicle service contracts sold in the U.S.”, issued a press release that contained what we believe are some valuable tips for car buyers considering purchasing a service contract.

Here are some excerpts from that release:

Consumers Obligations:

•    Read the contract provisions carefully and understand all coverage and exclusions
•    Keep detailed records, including contract paperwork, receipts, and maintenance records
•    Adhere to all manufacturers’ recommendations for routine maintenance, such as oil and spark plug changes.  Failure to do so could void the contract.
•    Identify the name of the service contract provider on the contract.  If a contract does not list an administrator’s contact information, contact your state Department of Insurance or the Better Business Bureau to determine if the company is authorized to do business in your state.
•    Check if the plan’s administrator is a member of the Service Contract Industry Council (www.go-scic.com)

Consumer Tips:

•    Most service contracts cover normal wear-and-tear and may fill in coverage gaps in the manufacturer’s warranty for up to 7 years and/or 100,000 miles
•    In many states, service contracts come with a “free look” period, usually 30 days.  If a consumer believes they acted impetuously, the contract can be returned for a full refund during this period.
•    Do not buy a service contract if the provider will not supply you with a copy of the contract terms and conditions prior to purchase.
•    Be alert to service contract providers who use unsolicited mass marketing techniques, such as direct mail and telemarketing (e.g. “robo-calls”).

As we see it

From our experience one of the keys to successfully completing a bad credit car loan is the ability to keep a vehicle in running order. In many cases, a service contract can help owners on a tight budget avoid unforeseen expenses while keeping their efforts at credit repair on track. By following the tips offered by the Service Contract Industry Council and purchasing one when it makes sense, there’s a better chance of that happening.

One more tip: at no charge to applicants Auto Credit Express matches people that have experienced car credit difficulties with those new car dealers that can offer them their best chances at car loan approvals.

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

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