When you buy a new or used car with a bad credit car loan, there are a number of things you need to consider. You need to make sure that you include all the costs of car ownership in your monthly budget.

Auto Credit Express wants you to know

Here at Auto Credit Express, we want to help you with your bad credit car loan. In order to reestablish your credit, you need to make your payment on time. But there is more to your car than just the payment. In addition to paying the lender, there are other costs to consider.

Insuring your car

A major expense that many bad credit customers fail to include is the cost of car insurance. Even if you have car insurance on your present vehicle, it may be low cost partial coverage insurance – covering any personal liability or property damage. Financing a car requires full coverage insurance – which involves insuring the car against physical damage. In addition, the car that you'll be buying is probably newer than your current vehicle. Newer cars, because they're worth more and, due to their complexity, cost more to repair, have higher repair and replacement costs and, therefore, your insurance premiums will probably be higher.

How are you going to pay for gas?

That sport utility vehicle may be your dream car, but it's also more expensive and has poorer gas mileage. By setting your sights just a bit lower and buying a midsize or compact car, you'll save on gas and keep your monthly payments at a more reasonable level.

Maintenance and Service Contracts

If you're buying a new car, check the warranty. Make sure you are covered for the entire length of your finance contract. If not, consider an extended service contract and add that cost to your monthly payment. If you're buying a used car, an extended warranty is almost a “must have” option. You need to budget for the increase in your payment, but if some major component on your car breaks, you'll be glad you have it.

The Bottom Line

Make sure you include all these items in your car budget. To help you determine what you can afford, view our payment and budget calculators on our web site. Here at Auto Credit Express, we want you “on the road” to better credit today!