Setting aside your dream car and choosing something more practical can increase your chances of a successful problem credit auto loan

Knowing bad credit

If you think you're about to receive news of approved auto loans from us or one of our dealers, it's decision time.

We know because we've been working in bad credit car sales for nearly two decades at Auto Credit Express and, during that time, we've helped hundreds of buyers qualify for no credit auto loans.

We've also shown them that a tote the note dealer won't help their FICO scores (applicants can also fill out an online car loans bad credit application) and explained the loan process (to help them reduce the chance of repossession).

But once approved, there are often other choices that have to be made, not the least of which is picking the right kind of car.

The right bad credit car

While many problem credit auto loan buyers want to finance an SUV, van, or full-sized sedan, choosing one is just asking for trouble. Due to the high interest rates charged by subprime lenders, the monthly payments of most of these vehicles are over the limit of most budgets.

The added cost of both insurance and fuel will also make owning all three vehicle kinds even more expensive.

AAA survey

In a recent auto club, fuel prices were among the most important factors that lead to an increase in vehicle operating costs. According to AAA, based on 15,000 miles per year, these are the average costs of driving a vehicle based on size and type:

Small sedan – 43.3 cents per mile or $6,496 per year
Medium sedan – 56.2 cents per mile or $8,436 per year
Minivan – 62.0 cents per mile or $9,301 per year
Large sedan – 70.2 cents per mile or $10,530 per year
4WD SUV – 73.9 cents per mile or $11,085 per year

The total cost takes factors in depreciation as well as fuel, tire, and insurance costs - all important considerations with a bad credit auto loan.

Small sedans

The report noted that “The small sedan category experienced the smallest increase of the five categories of vehicles, rising only 2.9 percent from last year to 43.3 cents per mile or $6,496 per year, based on 15,000 miles of yearly driving. The minimal increase was primarily due to the increased popularity of small sedans led by higher fuel prices. It resulted in the small sedan category being the only one where depreciation costs were lower than last year, falling 1.9 percent.

Bad credit buyers, then, could save over $2,000 a year simply by buying a small sedan instead of a midsize sedan – money that could be used to shorten the loan term or freeing up more money to pay bills until the second chance auto loan is paid off.

As we see it

Financing a vehicle with a bad credit auto loan means it's time to get practical when picking out a car. It's also time to focus on making your monthly payments on time and paying the rest of your bills, so the next vehicle can be financed at a lower interest rate.

Auto Credit Express has helped thousands of people with bad credit buy cars and establish their auto credit through a nationwide network of dealers that specialize in horrible credit auto loans.

So if you are serious about getting your car credit back on track, you can begin the process now by filling out our secure online car loans bad credit application.