Keeping it affordable for easy auto credit bad credit auto loans will increase your chances of successfully reestablishing your car credit

The car is the key

If you have a bad credit rating and you're thinking of applying for auto loans for bad credit, you may want to start thinking about what kind of car you need. We've seen this situation before at Auto Credit Express because we've been working with poor credit car buyers for over two decades. Seeing the embarrassment and frustration that customers with bad credit potentially face, we even developed a web site to accept people's applications and match up these customers with local dealers that specialize in customer credit issues. This way, they will have their best chance at getting approved for a car loan, even if that means a bad credit car loan.

The alternative - buying a vehicle from a tote the note, we finance anyone car dealer - can be a problem because normally these dealers don't report your payments to the credit bureaus. On the other hand, taking out a loan through a dealer with a bad credit lender and choosing the wrong kind of vehicle can also create problems and might even result in repossession.

This leads us into today's topic, picking the right car for easy auto credit bad credit auto loans.

Keep it reliable and inexpensive

While many applicants looking for easy auto credit want to finance either an SUV or a relatively expensive full-sized sedan, choosing either one is just asking for trouble if you have bad credit. This is because the high interest rates charged by bad credit lenders will place the monthly payments of both types of vehicles at the very limits of most people's budgets.

There is also another thing to consider if you're thinking of financing that big sedan or SUV with a bad credit auto loan: the increased cost of both insurance and fuel will make owning either one even more expensive.

AAA survey

But don't just take our word for it. A recent survey by the American Automobile Association pointed out that rising fuel prices were among the most important factors that lead to an increase in vehicle costs of 4.8 percent for owners of medium-sized sedans. In fact, based on driving 15,000 miles per year, here are the average costs of driving a vehicle, based on its 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 final cost also take into consideration a vehicle's depreciation as well as fuel, tire, and insurance costs.

Ownership costs

AAA also had this to say about the survey's results: “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.

According to AAA, then, you could save over $2,000 a year simply by choosing a small sedan over a medium sedan – money that you could either put towards buying down your loan, or funds that could make the rest of your life more comfortable until your easy auto credit loan is paid off.

The Bottom Line

When you apply for easy auto credit bad credit car loans, it's simply not the time to buy your “dream car”. Instead, it's time to focus on making your monthly payments on time and paying the rest of your bills, so that you're able to finance your next vehicle at a lower interest rate with the ultimate goal of eventually qualifying for prime interest rates.

At Auto Credit Express, we've helped thousands of customers with bad credit buy cars and reestablish their auto credit at the same time. Our nationwide network of affiliate dealers specializes in easy auto credit bad credit car loans and has the experience and expertise to work with practically any credit situation.

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