People with bad credit had some good news last week as Volkswagen announced that it was rolling out a revised CPO used car program beginning in the European market
Begin with a reliable car
Reputable bad credit car loan sites such as autocreditexpress.com believe in working with people who have bad credit and helping these individuals raise their credit scores and also reestablish their car credit – a form of credit repair - by filling out an online bad credit car loan application and financing a vehicle through our nationwide network of dealers that specialize in second chance auto loans.
Along the way they try to provide their applicants with the information needed in order to make educated decisions about the kind of loan they should choose (such as a tote the note loan versus a bad credit auto loan). The reasoning for this is that a bad decision at this point could result in a loan the applicant can't afford which could turn into in a repossession that could lower their FICO scores even further.
With the cost of new vehicles rising every year, most credit-challenged individuals that fill out a bad credit car loan application and get approved will decide that it is much more affordable to raise their credit scores and reestablish their auto credit with a 2 or 3-year-old used car. With the quality and durability of these vehicles at an all-time high, this decision makes sense.
Now those same consumers are faced with another decision: should they buy a regular used car or a certified used car?
Volkswagen used cars
Yesterday, Volkswagen announced that it was reorganizing its used car business under the motto “Das WeltAuto. Used cars you can trust. Guaranteed.” The new program will begin in Germany on June 1, 2010, followed shortly by Russia, Italy, France, the UK, and the USA.
If you've read any of the previous blog articles here at Auto Credit Express, you know how we feel about certified used cars – generally known in the industry as certified pre-owned or “CPO” vehicles. The fact is, we believe that, for the most part, these certified used cars can be a good choice for many credit challenged individuals.
Most CPO programs work this way: if a vehicle meets certain age and mileage requirements and can pass a required inspection, dealers can use these trade-in or lease turn-in vehicles and sell them with an extended service contract that is very similar to the warranties found on new vehicles – the only difference being that the number of miles and years can be extended past the original warranty termination date to cover additional months and miles the amount of which depends upon the manufacturer and the program involved.
Because of this built-in, manufacturer-backed warranty coverage and other perks (such as roadside assistance), the dealer can (and usually has to because of the additional cost involved) sell these CPO vehicles at a premium over non-certified used cars, which is also something that bad credit buyers should keep in mind when considering the affordability factor of these vehicles.
Although Volkswagen hasn't released any specific guidelines of the new program, Christian Klingler, a Member of the Board of Management of Volkswagen AG responsible for Sales, commented about the program in a recent press release, “Das WeltAuto.' (The World Car) is not simply a new name. Our mission is to deliver the performance and quality our customers expect from Volkswagen for our used cars as well. Going forward, there will be clear standards and a comprehensive customer promise at attractive prices for every used car under the 'Das WeltAuto.' brand. And that will apply worldwide.”
Other highlights of the program include even more comprehensive quality checks as well as the ability to “exchange the vehicle if it fails to meet their (customers) expectations.”
Be sure it is the Volkswagen program
Keep in mind that the program we're talking about here for bad credit car loan customers is part of Volkswagen's certification program. Just because a Volkswagen dealer advertises a car as certified does not necessarily mean that it is part of the “Das WeltAuto” program. Any dealer can “certify” a car, since the word, itself, really has no meaning. So if you are considering a “certified” from your Volkswagen dealer, be sure it certified under the VW factory program. If not, you may be required to pay for any repairs up front and submit the receipts to an outside service contract company for reimbursement – a process that can be a hassle.
Choose the right vehicle
One other thing that we're more than a little concerned about around here is keeping your bad credit auto loan payment affordable. Fortunately, at least a couple of Volkswagen models fall into this category – even though Volkswagens tend to depreciate less than other vehicles in their categories – which makes their used cars comparatively more expensive after two or more years on the road.
Despite the fact that the Volkswagen Passat, Eos, Tiguan, Routan and Touareg as well as the GTI and GLI are beyond the budgets of most bad credit buyers, the Jetta sedan and especially the Golf hatchback are two vehicles that can work.
The bottom line
Keep in mind that certified used vehicles are usually more expensive than their non-certified counterparts. The costs of an inspection, the required replacement of warn and defective parts as well as a fairly expensive service contract all add to the price of any CPO vehicle. Before buying one, it makes sense for credit-challenged customers to do some research and compare the selling prices of both certified pre-owned vehicles and their non-CPO counterparts (priced with a comparable service contract).
Auto Credit Express has helped thousands of people with bad, blemished, bruised, and tarnished credit buy cars and reestablish their auto credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. 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.
For more information, feel free to visit www.autocreditexpress.com to see what we can do for you.