Adding Dealer Products to Poor Credit Car Loans

Avoid adding any unnecessary back end products to your bad credit auto loan

Over the top

Some dealers will try and sell you on the advantages of unneeded services once you’ve been approved for horrible credit auto loans.

We’ve seen this situation many times after nearly two decades of our involvement with bad credit auto sales here at Auto Credit Express.

We know that tote the note dealers aren’t interested in improving your credit scores and we will also explain the subprime loan process to you (to reduce the possibility of repossession).

While most dealers that offer terrible credit auto loans will explain what back end products are, there are always a few dealers that attempt to trick buyers into paying for additional products and services they really don’t need.

Back end products

Even with damaged credit car dealers sell a number of products and services on the “back end” (the car is the “front end”) of a car sale.

Some could end up saving you money, while others are a waste, so here’s our take on a few:

The good

Gap insurance – if you have very little money down or you’re financing for more than 36 months, this can be worth the cost.

Extended warranty – A service contract can save you money if the finance contract is longer than the new car warranty. It makes even more sense if you’re buying a used car with little or no warranty and you’re on a tight budget. But don’t believe it if anyone says you have to purchase one because the lender requires it.

The bad

Market price adjustment – This one can be iffy. After all, if a customer can offer a dealer less than sticker price, why can’t a dealer charge above MSRP for a popular model in high demand and short supply? You can check this out by calling other dealers in your area to find out if you can buy it at or less than MSRP. If you can’t, you have to decide if it’s worth the extra money or whether waiting a few months could save you hundreds or even thousands of dollars.

The ugly

Window etching – This involves etching a vehicle’s VIN number onto the windows of a car. The cost generally runs from $200 to as high as $350 or more. Even if you’re able to get it reduced to a hundred dollars that is still too expensive; if you really have to have it, buy a kit at an auto parts store and do it yourself for around $20.

Prep fees – There are still a few dealers that think they can get away with charging an additional vehicle preparation fee on a new car. But a closer look at the window sticker will tell you this is included in the suggested retail price. If this fee is on the buyers order, ask that it be credited back to you. If the dealer won’t do it, walk away from the deal.

As we see it

Choosing a particular back end product is a decision that only you can make. We suggest you try to avoid the “bad” and stay away from the “ugly” ones.

We want you to know this because at Auto Credit Express we’ve helped thousands of people with poor credit finance a bad credit car and establish their auto credit through a network of dealers that specialize in bad credit auto loans.

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

Posted on August 15, 2011 by in Auto Loans, Backend Products, Bad Credit
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