When financing used cars with no credit auto loans it is not always a bad idea to consider purchasing a service contract

What to buy

It's no secret that we feel purchasing a service contract can be a really smart move when financing a used car with horrible credit auto loans.

That's because we've been involved in bad credit car sales for over nineteen years here at Auto Credit Express.

A web site we designed for applicants explains the bad credit car loans process so credit-challenged buyers can bypass tote the note dealers and learn the facts about issues such as repossession.

We also go over issues such as used car service contracts, more commonly known as extended warranties

Used cars

Taking price into consideration, 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, which makes sense for 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 with a problem credit auto loan.

Extended auto warranty

An extended auto warranty is like an insurance policy. When you buy one, you're betting that your car is going to break, while the warranty company is betting that it won't.

And even though today's vehicles are more reliable, they're also more complex. Black box-type engine management and vehicle safety systems make your car safer and more fuel efficient, but if something goes wrong they can be very expensive to replace.

In addition, most of us find that it's easier to budget an additional $25 to $35 a month than pay $300 or more – without any advanced notice - to replace an electronic part in order to get a vehicle running. The fact is, if a car can't be repaired immediately, most people with bad credit are forced to either finance a second car with a buy and pay here dealer or take public transportation.

Too often, this leads to repossession, since no one wants to make payments on a car they can't drive.

The Bottom Line

The tighter the budget, the more important it can be to avoid unexpected expenses. If this describes your own financial situation, you should consider an extended warranty especially if you're financing a used car with a bad credit car loan.

At Auto Credit Express we help people with credit difficulties find a dealer for their best chance at a bad credit auto loan approval.

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