One thing we have learned from experience is that the key to a successful bad credit car loan means focusing on the basics. In this case, it means understanding both the pros and cons of credit life insurance.

From our own experience, one key to successfully completing a subprime car loan is the ability to keep a vehicle in running condition. In many cases, a service contract can help borrowers on a tight budget avoid unforeseen expenses while keeping their credit repair plans on track.

Credit-challenged car buyers, especially those on a tight budget, should seriously consider automobile gap insurance when their annual mileage is above average, the finance term is over 60 months and the total down payment is less than 20 percent.

Finance managers have been known to present the product to problem credit buyers as protecting an auto loan which is actually a fairly accurate description. But the fact remains that credit-challenged borrowers, in particular, should have a basic understanding of how credit life insurance works.

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.

For car buyers with questionable credit there are a number of situations in which the protection provided by car gap insurance for an auto loan makes sense.

Speaking of bad credit cars, the one area that horrible credit auto loans buyers need to pay attention to is vehicle maintenance – something that's very important, since a number of repossessions result from car breakdowns. After all, who wants to continue making payments on a vehicle that doesn't run?