The answer to this question might have been much more than buyers had planned on at least in the Golden State before a new law that took effect last July that especially helps consumers with poor credit
We have seen what can happen

Used car buyers, in particular those with credit issues, have been shown to be easy targets for unscrupulous sellers hoping to unload used cars that are either rebuilt or have suffered some other type of damage.

Here at Auto Credit Express we've seen what often happens in these cases because we've spent the past two decades helping people with damaged credit find those legitimate new car dealers that can give them their best chances for approved auto loans.

We even designed our website so we could share this experience with applicants that have encountered credit problems. So you can imagine how pleased we were last year to learn of a new California law will help buyers in that state – especially those with bad credit (since an Experian Automotive study found these types of buyers especially vulnerable) avoid signing a car loan for a vehicle with a branded title.

Applicants visiting our web site often ask us, "How much will a car loan cost me?"

The answer, especially if they unintentionally finance one with a branded title, is much more than they may realize.

Used cars

A used car is typically the best vehicle choice for a high-risk car loan. According to no less a source than Consumer Reports, new cars can lose up to 47 percent of their value in the first three years. This means picking out a used car is both a smart and an affordable buying decision.

But buying used also carries the risk that the car you'll be financing might not be exactly what the seller states it is.

A recent Experian Automotive study revealed that "more than 2 percent of the late-model used vehicles (model year 2005 and newer) had a negative vehicle history event (frame damage, salvage, odometer rollback, etc.), which can significantly impact the vehicle's value."

The report also noted that "more than 3 percent of financing outside of prime had negative vehicle history" which means buyers with poor credit scores are even more at risk.

California law

For credit-challenged buyers living in California, help came last year in the form of a new law that took effect on July 1st.

Called AB 1215, it changed then-current laws in a number of ways. While it allowed auto retailers to raise documentation fees on retail purchases and leases, it also requires dealers to run the vehicle identification number of any car they plan on selling through the National Motor Vehicle Title Information System to check whether it has a branded title.

If the report comes back that it does, a red window sticker must be affixed to it warning buyers of the car's history.

According to its sponsor, California Assemblyman Bob Blumfield, "Buying a car comes second only to the commitment that comes with buying a home. With working families striving to stretch their dollars in this tough economy, there couldn't be a better time to help ensure that family cars are a good and safe investment."

The Bottom Line

Although the only guaranteed way to prevent buying a previously damaged car is having it thorough inspected by an ASE certified master mechanic as well as a body and frame specialist, the new California law is a great first step in informing potential buyers of possible serious problems with a vehicle.

Another great step all buyers with bruised credit can take is to check us out. Here's why: here at Auto Credit Express we specialize in helping applicants with problem credit find those dealers that can give them their best chances for auto loan approvals.

So if you're ready to reestablish your car credit, you can begin now by filling out our online auto loans application.