For car shoppers with poor credit there are a number of advantages to financing a used vehicle with an auto loan from a subprime lender.
Here at Auto Credit Express we understand this as well as why choosing the right kind of vehicle is also a key in completing one of these loans successfully because for more than twenty years we’ve been guiding consumers with bad credit to those dealers that can offer the best opportunities for auto loan approvals.
Twenty-five years ago, the difference between new and used cars was quite a bit more than it is now. New vehicles were much more reliable in comparison and came with a fairly comprehensive warranty that covered at least the first two years.
At the same time buying used was more of a gamble. Although most were dependable there was always the chance buyers would inherit the problems of the previous owner.
The used car buying experience was also much different. While new car buyers could browse in dealer showrooms, used car shoppers were often forced to visit small open-air lots without the advantage of vehicle history reports.
Better used cars
Both dealers and manufacturers now realize the importance of used cars. Another plus is the fact that the vehicles, themselves, have also gotten more reliable.
Besides regular used cars, most franchised new car dealers now sell certified used cars – newer, lower-mileage vehicles with manufacturer-backed warranties- a used car service contract that essentially extends the new car warranty – in some cases for as many as 7 years or 100,000 miles, depending upon the vehicle and manufacturer.
While these certified used cars are usually more expensive, they do offer more peace of mind. Vehicle quality has also improved to the point that, with proper maintenance, most cars should last for 100,000 miles or more.
The issue of previous owner problems such as improper maintenance and accident damage issues has also been at least partially addressed.
Companies such as AutoCheck and Carfax will, for a fee, furnish you with a vehicle history report that includes an accident check,
mileage accuracy check and warranty check along with other vehicle history details. In most cases, if the vehicle is being purchased from a dealership, the dealer will supply these reports for free.
Vehicle history reports, however, should only be thought of as a starting point since they’re not always complete. More to the point, buyers should have any used car they’re seriously considering inspected by an ASE Certified Master Mechanic as well as a body and frame specialist before buying it.
Finally, the biggest reason for buying used is depreciation. Since all vehicles drop in value and the highest percentage occurs during the first two to three years of ownership, a newer used car is typically a much better value than a brand new one – especially when considering the higher interest rates of subprime loans.
As we see it
For most buyers, choosing a quality newer used car over a new model typically makes financial sense. It makes even more sense for borrowers with damaged credit
Another good tip: Auto Credit Express matches consumers with questionable car credit, even those that believe their only option is a BHPH car loan, with dealers that can offer them their best opportunities for approved auto loans.
So if you’re ready to establish your auto credit, you can begin now by filling out our online auto loan application.