Conserving money by financing a used car can be a smart move especially if you have poor credit
What we can tell you
Car shoppers with less than perfect credit typically choose a used car when it’s time to finance.
We actually think this is a good idea as long as they’ve covered all the bases and we should know because we’ve been involved with bad credit auto sales for over two decades here at Auto Credit Express. We even designed a website so that people who are credit-challenged can check out such issues as repossession and child support income as well as today’s topic, the advantages of financing a used car if you currently are experiencing credit issues.
Used car sales
Twenty years ago, the decision of whether to buy a new or used car was fairly easy. New vehicles were always more reliable and most came with a warranty that covered manufacturing defects for at least the first two years.
Buying a used car, however, was something of a gamble. Sometimes you ended up with something very dependable. But there was also the chance that you’d inherit the problems of the previous owner. The buying experience, in addition, was different. Instead of looking at shiny new models in a dealer showroom, you were forced to shop at small open-air lots from salespeople that would tell you little about their inventories other than “she runs great”.
Dealers as well as manufacturers now recognize the importance of the used car market. In addition to regular used cars, most dealers now also offer vehicles with manufacturer-backed certified used car warranties for newer, lower-mileage vehicles. Under these programs, if a used car meets certain guidelines, the dealer can place a warranty on it that essentially extends the new car warranty in some cases for as many as 7 years or 100,000 miles, depending upon the vehicle and manufacturer.
The vehicles, themselves, have changed. Build quality has improved tremendously and, with proper maintenance, most cars should last for 100,000 or more.
The issue of a vehicle’s previous problems has also been at least partially addressed. Companies such as AutoCheck and Carfax will, for a fee, allow you to pre-screen a vehicle. These vehicle history reports include an accident check, mileage accuracy check and warranty check along with other vehicle history details – just be sure to have any used car you’re thinking of buying inspected by an ASE Certified Master Mechanic before you take delivery.
Finally, since every car depreciates in value and a higher percentage of that depreciation occurs in the first few years, the price you pay for a newer used car is usually a much better value than a comparable new one.
The Bottom Line
Buying a used car is much less of a gamble than it used to be, so choosing a quality used car over a new car usually makes better financial sense.
Also remember that at Auto Credit Express we help people with car credit difficulties find a dealer for their best chance at an auto loan approval.
So if you really want to get your auto credit on track, you can start now by filling out our online auto loans application.