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.
A program offered for the past two years by Mazda dealers could help car buyers with questionable credit who receive a loan approval through one of them save money on routine car maintenance.
Consumers with problem credit should know what could happen before they respond to a phone call or email from what might turn out to be a fraudulent company attempting to sell them a new or used car service contract.
It is a fact that used car buyers with problem credit as well as traditional borrowers with good credit that have, at least in the past, been contacted by call centers fradulently representing themselves as used car warranty companies.
We know that borrowers, especially those with bad credit on tight budgets and financing their vehicle with a higher-risk auto loan, are particularly at risk for unforeseen vehicle expenses in situations that could typically be helped by either a new or used car service contract.
While pre-owned vehicles other than certified used cars typically don’t come with any kind of warranty, most car buyers with bad credit can roll the cost of an auto service contract into their car loan.
When it comes to used car service contracts for consumers with bad credit, adding one to an auto loan really depends upon the buyer’s personal situation.