Carfax offers up some buying tips which should be especially helpful to bad credit consumers since the majority of auto loans for bad credit buyers finance a used car
Helping the bad credit buyer
If you have a score below 640 or your credit history is fairly new (and no co-signer), then you will probably have to finance your car with a bad credit car loan. The good news is that Auto Credit Express has helped thousands of applicants just like you reestablish their auto credit. You can begin the process simply by filling out our online car loans with bad credit auto loan application. By avoiding a tote the note dealer and qualifying for a second chance auto loan at one of our affiliate dealers. You will not only establish auto credit, you will actually raise your credit scores at the same time.
But you need to be careful. A car that’s too expensive can stretch your budget and result in repossession. If this happens, the only remaining choice for most car loans with bad credit buyers is a Tote the Note, We Finance Everyone car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that’s more than a year old.
After you’ve filled out our secure online bad credit auto loan application and been approved at one of our affiliate dealers, the next step is to match up your payment call with either a new or used car in that dealer’s inventory. But even if you think you want a new car, hear us out first.
Used Cars – a smart alternative
Buying a used car is no longer just for those buyers who can’t afford or can’t qualify for a new car loan. There are a number of reasons why buying a used car with a bad credit auto loan makes sense:
• Depreciation – New cars depreciate a lot. Buying a 2 year old car will save you from 20% to 35% off the price of a comparable new model.
• Warranties – New cars often come with transferable warranties that cover 5 years and up to 100,000 miles. If you buy a used car that is still under new car warranty, you can usually save money on an extended service contract when you purchase one from the vehicle manufacturer.
• Certified Vehicles – Most manufacturers offer certified used cars that are more expensive than regular used cars but with extended service contracts that offer peace of mind and may be worth the difference in cost.
• Quality – Today’s used cars offer the highest quality in history.
Carfax used car buying tips
Carfax recently came out with a number of used car buying tips for all buyers that can be especially helpful to bad credit auto loan buyers:
Look for:
Pricing. Demand for used cars slowed a bit recently, helping to lower used car prices. Visit third-party pricing sites to get retail book values and use the new Carfax History Impact to adjust those values based on the reported history.
Certified Pre-Owned (CPO). The best value for many used car shoppers, certified cars are the closest thing to new cars at used car prices. Most manufacturer programs, such as Honda, GM and Toyota include a Carfax Vehicle History Report and rigorous mechanical inspection with every CPO vehicle.
Cars sold online. Sites like AutoTrader.com and Cars.com let you expand your search area and compare vehicles to find the best deal. Use discretion when buying from online classifieds and auction sites.
Paperwork. Have the seller provide as much documentation as possible, like registration and title documents, service receipts and proof of insurance.
Look out for:
Open recalls. Estimates are that 30% of all recalled cars go unfixed. Check for open recalls at www.carfax.com/recall and get more details about a specific recall at www.safercar.gov. Franchise dealers will fix open recalls for free.
Odometer rollbacks. Digital odometers can be easier to tamper with and harder to detect. Make sure the wear and tear on the inside and outside of the car matches what the mileage reading says.
Flood damage. Experts predict this year’s hurricane season could rival 2005, when Hurricanes Katrina, Rita and Wilma hit the U.S. More than half of the cars damaged by floods, including the most recent flooding in Tennessee, get cleaned up and returned to the road.
Curbstoners. Illegal dealers posing as private sellers sell lots of cars either on the side of the road or through classified ads. Many of the cars have hidden problems and the seller typically disappears after the sale.
Apply at Auto Credit Express for a bad credit car loan
If your FICO score is below 640, you will probably need to apply for a bad credit auto loan. The good news is that we have 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. Our web site, www.autocreditexpress.com, will help you determine how much car you can afford and unlike other sites, our toll free number is listed on every page, in case you have any additional questions.
So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.
