When buying a vehicle with a bad credit auto loan there are a number of expenses that need to be included in the total cost of ownership

Auto Credit Express wants you to know

At Auto Credit Express we've spent the last 20 years working with consumers who have bad credit by directing them out our online bad credit auto loan application and financing a vehicle through our nationwide network of dealers that specialize in second chance auto loans. Unlike tote the note dealers, the lenders these dealers work with report to the credit bureaus and can help you reestablish your car credit and raise your FICO scores.

We also want you to pick the right vehicle for auto loans for bad credit. A car that's too expensive can stretch your budget and might even result in repossession. If this happens, the only remaining choice is usually a buy here pay here car dealer. It also means that rebuilding your auto credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that's more than a year old.


To begin with, in order to reestablish your credit, you need to make your car payment on time. But there is more to your monthly vehicle expenses than just the payment. In addition to paying the lender, there are other costs you need to consider.

Auto insurance

A major expense that many bad credit customers fail to budget for is the cost of insurance. Even if you have car insurance on your present vehicle, it may be low cost partial coverage insurance – covering just your personal liability or property damage.

Financing a car requires full coverage insurance – which involves insuring the car itself against physical damage. In addition, the car that you'll be buying is probably newer than your current vehicle. Newer cars, because they're worth more and, due to their complexity, are more costly to repair, have higher repair and replacement costs.  Because of this, the insurance premiums on your new car will probably be higher than on your present vehicle.


That sport utility vehicle may be your dream car, but it's also more expensive and has poorer gas mileage. By setting your sights just a bit lower and buying a midsize or compact car, you may actually be able to save money on gas and keep your monthly payments at a more reasonable level. But keep in mind that you'll still have to budget every month for fuel expenses.


If you're buying a new car, be sure you check the warranty. Make sure that the vehicle is covered for the entire term of your finance contract. If not, you might want to consider an extended service contract - sometimes called an extended auto warranty - and add that cost to your monthly payment at the time of delivery.

If you're buying a used car, an extended service contract is almost a “must have” option. You'll need to budget for the increase in your monthly payment, but if some major component on your car breaks, you'll be glad you bought it.

The Bottom Line

Make sure you include all these items in your vehicle budget. To help you determine what you can afford, view the payment and budget calculators on our web site.

At Auto Credit Express we have helped thousands of people with bad credit buy a car and reestablish their auto credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans and since our inception we have processed over 2 million applications and our dealers have closed over $2 billion in auto loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.