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How to Finance a Used Car with Poor Credit and No Cosigner

 

Helping car buyers finance a used car with poor credit and no cosigner is Carfax that not long ago added a FEMA advisory to its vehicle history reports to help cut back on the chances of financing a flood damaged vehicle
How to Finance a Used Car with Poor Credit and No Cosigner
Our experience

In a move that will undoubtedly help those consumers with bad credit searching for online car loans, last November Carfax announced that it has taken the additional step of helping to identify vehicles that were previously registered in areas known to have been affected by flooding.

Here at Auto Credit Express we believe that this could turn out to be significant for car shoppers with questionable credit, based on the fact that, for the past twenty years, we’ve been helping these types of buyers find those new car dealers that can offer them their best opportunities for approved car loans.

It’s also because a majority of these buyers end up financing used cars and it’s important that, at the time of sale, they have a clear understanding of the type of vehicle they’re purchasing. In this regard a vehicle history report can provide a crucial first glimpse in determining whether a vehicle under consideration has suffered from any problems in the past.

Vehicle history reports

Many of the applicants who visit our website want to know how to finance a used car with poor credit and no cosigner. One of the keys to a successful auto loan of this type is being able to rely on the fact that the used car being financed won’t end up costing a buyer even more money than necessary because it has serious hidden problems.

The place to begin is with a vehicle history report.

Back in November of last year, Carfax made the following announcement:

To help consumers and dealers avoid potential fraud, Carfax is identifying specific cars that were last registered or located in FEMA-declared major disaster areas from Hurricane Sandy. A public service announcement included with Carfax Vehicle History Reports alerts buyers about a car’s last-known location and reminds them to check for flood damage during a pre-purchase inspection. Adding this advisory may help reduce the chance of damaged vehicles being resold to unsuspecting consumers during the recovery period.

The costs

As always, Carfax charges $39.99 for one, $49.99 for five, or $54.99 an unlimited number of vehicle history reports over a 30 day period (although this includes just five reports by VIN – the rest are by license plate number).

Vehicle inspection

While this additional information is a big step in the right direction, these reports, as good as they are, can sometimes be incomplete. Therefore, once buyers have narrowed the choice down to the vehicle they want, there is one more important step that needs to be taken.

Vehicle inspection

If the vehicle history report shows that the car has a clean vehicle history, it should then undergo a thorough mechanical and structural inspection. These should be performed by an ASE certified master mechanic and body specialist.

These vehicle inspections are offered by both individual mechanics and companies. The cost typically runs between $100 and $200 but consider it money well spent as a car with hidden damage means not only a lower resale value but it could also result in thousands of dollars in additional maintenance costs.

If the seller refuses to allow this, it’s best to just walk away from the deal.

Free flood damage check

One more thing: according to Carfax, “As a public service, Carfax offers a free check for flood damage at flood.carfax.com. Carfax is working with law enforcement, state agencies and private companies to make sure vehicles flooded and damaged by Sandy are properly branded and reported.”

The Bottom Line

A vehicle history report can be an important tool in narrowing down the choices of which used car to buy. Just be sure this is followed up with a thorough physical and mechanical inspection for any vehicle you plan on financing.

Another smart choice: submitting a loan application at Auto Credit Express where we match consumers that have experienced car credit problems with those new car dealers that can offer them their best chances for 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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