Here at Auto Credit Express we’ve always felt that a service contract was one of the better dealer backend products for borrowers with problem credit, especially if they’re financing a used car with a high-risk auto loan. But a recent article from the Service Contract Industry Council which includes a number buying tips also points out another reason why purchasing one might be a good idea.
Here at Auto Credit Express we often get a question from car shoppers searching for online car loans that goes something like this: “if I have lousy credit can I get a car loan and if I get one can I finance a new vehicle?”
It’s a fact that most car buyers with poor credit that qualify for an auto loan will end up financing a used car because they’re typically more affordable. But among the things they should be looking for while checking one out is if it has one or more open recalls.
Borrowers with damaged credit may not realize it but by at the time they sign up for an auto loan they also start the ball rolling to save themselves money in other areas down the road.
Borrowers with deficient credit sometimes often don’t understand that checking their credit reports before applying for an auto loan could save them money.
According to Experian Automotive, consumers with damaged credit have a greater chance of financing a car with a branded title or some type of hidden damage. Since this includes vehicles with water damage it would help if these buyers learned how to spot this type of problem.
Just yesterday Mazda announced that its certified used car program has been upgraded. The changes that were made could further help consumers with problem credit during an auto loan as this move increases the warranty coverage for Mazda used cars.