Keeping it smaller and more affordable will increase your chances of reestablishing your car credit successfully with auto loans for bad credit

From our experience

Here at Auto Credit Express we've spent close to 20 years working with consumers who have bad credit and helping these same applicants raise their credit scores and reestablish their auto credit by financing a vehicle with a bad credit auto loan.

If you're wondering how we do this, it's simple: By filling out our online car loans with bad credit loan application and avoiding a tote the note dealer, you can begin a new chapter in your life by getting approved at one of our affiliate dealers for a second chance auto loan. Along with paying the rest of your obligations on time, you will then be able to re-establish your car credit and, at the same time, raise your FICO scores.

One other reason many consumers visit our site is because we're truthful about what it takes to do this. We readily admit that the process can be an expensive one because of the high interest rates associated with bad credit car loans.

The key to a successful bad credit auto loan is focusing on the basics. In particular, applicants need to understand that it's not about the car, but making the car payment and the loan term as affordable and as short as possible because you, as the customer, can also make it more expensive than necessary by choosing the wrong kind of car.

A vehicle that's too expensive can stretch your budget to the breaking point. This can sometimes result in repossession. If this happens, the only remaining choice for most people needing transportation is a tote the note car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders associated with auto loans for bad credit will only consider applicants with a repossession that's more than a year old.

Keeping it small and simple

While many applicants with bad credit want to buy either an SUV or a relatively expensive full-sized sedan, buying either one doesn't make any sense at this point in time. This is because the high interest rates charged by bad credit lenders will place the monthly payments of these vehicles at the very limits of most budgets.

But there is another thing to consider if you're thinking of financing that big car or SUV with a bad credit car loan: the increased insurance and fuel costs that make owning one of these types of vehicles even more expensive.

Auto Club survey

This point was brought home recently in a survey by AAA that 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 sedan owners to 56.6 cents per mile.

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

These figures, by the way, take into consideration depreciation, fuel, tire, and insurance costs.

Small sedans shine

Here is what AAA said about the results of the survey: “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.

As we see it

When you apply for auto loans with bad credit it is simply not the time to buy your “dream car”. Instead, it's time to focus on getting yourself back in the game in order to finance your next vehicle at a lower interest rate with the ultimate goal of eventually qualifying for prime interest rates. At this point in time, you should pick the smallest and most affordable car that will fit your needs and save your “wants” for later.

Here at Auto Credit Express, we have 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 bad credit car loans and has the experience and expertise to work with  situations such as yours.

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.