Often qualifying for an auto loan is not as difficult as staying within your budget especially if you find yourself with questionable credit
What we know

Unlike the older cars sitting on BHPH car lots, the vehicles that subprime auto lenders generally finance are newer and require higher levels of insurance coverage. In addition to that, car buyers with problem credit should also include in their budgets all the other expenses involved before signing on the dotted line for an auto loan.

At Auto Credit Express we realize the importance of understanding this because for more than twenty years we've been helping car shoppers with bad credit find those dealers that can give them their best chances for approved car loans.

Here, then, are some tips on how to buy a car with no credit that we've learned over the years:

Auto insurance

The biggest expense that buyers typically fail to budget enough money for is car insurance.

In most cases this is due to the fact that the vehicle they're currently driving is paid off -which usually means their present policy covers only personal liability and property damage.

When financing a vehicle, lenders always require full coverage auto insurance – meaning additional costs for both collision and comprehensive damage coverage.

Even buyers that currently have full coverage auto insurance sometimes discover that there are increased costs to insure their next vehicle because newer cars are typically more expensive to both repair and replace.

Fuel economy

When deciding on a new car, don't ignore the advantages of better fuel economy. An SUV may be your dream, but not only will finance costs be high, most large vehicles typically have poor fuel economy.

By choosing a subcompact, compact or even an affordable midsize sedan, you'll not only have lower monthly loan payments, you'll also end up saving money on the cost of fuel which will help lower your overall monthly expenses even further.


If you're financing a new vehicle, be sure to check the length and coverage of its new car warranty. If the warranty doesn't cover the entire loan term or if some systems only have partial coverage you may want to consider purchasing an additional service contract (sometimes mistakenly referred to as an "extended warranty").

If you're buying a used car, a service contract is something you should definitely consider – unless you're able to set funds aside each month for unexpected repairs.

Tire replacement

Another thing many buyers overlook is the cost to replace the original equipment tires. While the majority of subcompact and compact cars are equipped with tires that are relatively affordable, some compacts and a number of midsize vehicles may have higher-performance tires on them that wear out sooner and can be expensive to replace.

Given the choice between two models, it's always a good idea to verify both the condition of their tires as well as how much it would cost to replace them. Picking the vehicle with the longer life tires that are more affordable to replace could save you hundreds of dollars in ownership costs.

As we see it

In addition to your car payment, insurance, fuel, maintenance and tire costs all need to be considered when setting up a monthly vehicle budget. The fact is consumers who don't understand how to buy a car with no credit run the risk of going over their budgets – a major cause of auto loan problems for these kinds of car buyers.

One more thing: at Auto Credit Express we match applicants that have experienced car credit problems with dealers that can offer them their best opportunities for car loan approvals.

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