In a bad credit car loan its important to factor in more than just your car payment when considering the total costs of ownership

Locate a dealer

If you have bad credit, you'll want to know the other vehicle expenses you need to take into consideration when entering into car loans with bad credit. If you don't, it could become an issue as we've seen this happen before here at Auto Credit Express.

Not only that, but after seeing the embarrassment and frustration that customers with poor credit often encounter, we constructed a web site containing a bad credit auto loan application. Applications are then sent to local dealers in our network that specialize in customer credit issues.

One alternative, buying from a tote the note dealer, usually won't solve your credit problems because these dealers don't usually report loans or car payments to the credit bureaus. This type of loan can also result in a greater chance of repossession.

But even choosing a bad credit auto loan comes with its own set of risks, especially if you insist on buying the wrong kind of vehicle.

New car expenses

In order to reestablish your car credit, you need to make your monthly payments on time. But there is more than just the monthly payment to consider when choosing a vehicle. In addition to the car payment, you will have other monthly costs to consider.

Car insurance

A major expense that many people fail to budget enough money for is car insurance. If you have insurance on your present vehicle and it is paid off, it may only be partial coverage that includes personal liability and property damage. Financing a car requires that it have full coverage insurance – additional coverage that includes insuring it against collision and comprehensive damage.

If you currently have full coverage insurance and the car you plan on buying is newer than your present vehicle, the monthly premiums will probably increase. This is due to the fact that a newer car not only costs more to replace but, due to their complexity and added standard equipment, they are also more costly to repair.


That sport utility vehicle may be your dream car, but it's also more expensive and has poorer gas mileage than a small or midsize sedan. By setting your sights just a bit lower, you may actually be able to save money on fuel costs and keep your overall monthly expenses at a more reasonable level.

Major repairs

If you're buying a new car, be sure to check the length of the new car warranty. If it isn't covered for the entire term of your finance contract, you may want to consider an extended warranty and add this cost to the monthly payment.

If you're buying a used car, an extended warranty is almost a “must have” unless you can set aside funds each month for unexpected repair bills. Buying one means 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

Insurance, fuel and maintenance expenses are all things that need to be included in your monthly vehicle budget along with your monthly car payment. If you ignore any of these additional costs, you could run the risk of stretching your budget to the breaking point.

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their car credit at the same time. Our nationwide network of affiliate dealers specializes in bad auto credit.

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