Buying a used car and financing it with no credit auto loans means considering a service contract
It’s really a service contract but they’re also referred to as extended warranties and you should consider buying one if you’re financing your next car with a problem credit auto loan.
At least that’s been our experience after nearly two decades of involvement with bad credit car sales here at Auto Credit Express.
We realize a tote the note dealer won’t help your FICO scores and we can explain the loan process (to help you avoid repossession). We also try to cover the issue of extended warranties.
Used bad credit car
Taking into consideration the expenses involved, most people with bad credit decide that it makes more sense to go with a 2 or 3-year-old used car rather than a new one – a decision that’s good for at least a couple of reasons:
• New cars lose between 20% and 40% of their original value in the first two to three years, making a two to three-year-old vehicle that much more affordable.
• Because vehicle quality is at an all-time high, used cars are more reliable than ever.
But even though they’re reliable, we still think you should consider purchasing an extended warranty if you plan on buying one using no credit auto loans.
An extended auto warranty
An extended auto warranty is like an insurance policy. When you purchase one, you’re betting that your car is going to break, while the extended warranty company is betting that it won’t.
And even though today’s vehicles are more reliable, they’re also more complex. Black box engine management and vehicle safety systems make your car safer and more fuel efficient, but when something goes wrong them they can be very expensive to replace.
Most people find it much easier to budget an additional $25 to $35 a month than pay $300 or more – immediately – to replace an electronic part in order to get their car running. The fact is, if a vehicle can’t be repaired immediately, most people with bad credit are forced to either finance a second car with a tote the note dealer or to take public transportation.
Too often, this can lead to repossession, since who wants to make payments on a car that doesn’t work?
As we see it
The tighter the budget, the more important it is to avoid unexpected expenses. If this describes your financial situation, you should consider an extended warranty especially if you’re financing a used car with a bad credit auto loan.
Auto Credit Express has helped thousands of people in bad credit situations buy cars and establish their car credit through a nationwide network of affiliate dealers that specialize in approved auto loans.
So if you’re serious about getting your auto credit back on track, you can begin the process right now by filling out our online car loans bad credit application.
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