A question we're often asked is, "should I buy the extended warranty on my next vehicle?" This depends on if you are planning to buy a used or new vehicle.
Taking into consideration the expenses involved, most people with bad credit decide that it makes more sense to go with a 2 or 3-year-old used car rather than a new one - this is a good decision for a couple of reasons:
For one, new cars lose between 20% and 40% of their original value in the first two to three years, making them much more affordable. And two, because vehicle quality is at an all-time high, used cars are more reliable than ever. This reliability also makes them more complex. Black box engine management and vehicle safety systems make your car safer and more fuel efficient, but when something goes wrong with them they can be very expensive to replace.
Most people find it much easier to budget an extra $25 to $35 a month than pay $300 or more - immediately - to replace an electronic part in order to get their car running. The fact is, if a vehicle can't be repaired immediately, most people with bad credit are forced to either finance a second car with a tote the note
dealer or to take public transportation.
Too often, this can lead to repossession
, since who wants to make payments on a car that doesn't work?
The tighter the budget, the more important it is to avoid unexpected expenses. If this describes your financial situation, then you should consider an extended warranty.
Auto Credit Express
has helped thousands of people with bad credit buy cars and re-establish their car credit at the same time. If you have less than perfect credit, and need an auto loan, visit us at AutoCreditExpressVideo.com to find out how we can help.