Auto Net Financial News

The Federal Trade Commission has issued a series of tips that bad credit car loan consumers should take not of during the car buying process.

Bad credit auto loans

At Auto Net Financial we are dedicated to help consumers with bad credit reestablish their car credit and raise their credit scores by financing a vehicle with a bad credit auto loan. At the same time, we try to educate these same consumers on the subprime automotive loan process, since making a bad choice at this point in time can result in being trapped in a bad credit car loan that is barely affordable for a vehicle that doesn’t suit the purpose of rebuilding their credit.

Speaking of vehicles, we know from experience that most bad credit auto loan applicants will end up purchasing a used car, if only because they are more affordable. But this isn’t necessarily a bad thing. In the past twenty or so years, vehicle quality has improved and reliability has reached a point where even the average car can be expected to last at least 100,000 miles, with many vehicles capable of lasting much longer.

Being careful

But while the vehicles, themselves, have become more reliable and the selling process has become more transparent, there still remain more than a few unscrupulous sellers that are not above trying almost anything to make a fast dollar.

Fortunately, the Federal Trade Commission also realizes this and has come out with a list of tips to help consumers understand the used car market.

Used Car Buying Tips

Most of the tips the FTC lists have to do with common sense, such as:

• Before shopping for a car, think about your driving habits, your needs, and your budget

• The Federal Trade Commission requires dealers to post a Buyers Guide in every used car they offer for sale. Private sellers don’t have to use the Buyers Guide. The Guide tells you: whether the vehicle is sold “as is” or with a warranty; percentage of the repair costs a dealer will pay under the warranty; that spoken promises are difficult to enforce; to get all promises in writing; to keep the Buyers Guide for reference after the sale; the major mechanical and electrical systems on the car, including some of the major problems you should look out for; and to ask to have the car inspected by an independent mechanic before you buy

Bad credit car loan shoppers should pay special attention to the previous four suggestions. In particular, when thinking of their needs, credit challenged consumers need to consider the fact that a bad credit auto loan is not intended to finance their dream car. Subprime interest rates can be twice the normal rates, or more.

Borrowers with bad credit should look for a vehicle with adequate size, but with a minimum of optional extras. Compact to mid-sized sedans or minivans are both more affordable to buy as well as less expensive to insure and maintain than larger sedans or sport utility vehicles.

Additional tips

Here are some additional tips from the FTC:

• Examine the car using an inspection checklist. You can find these on Internet sites that deal with used cars

To learn more about the buying process, log onto www. ftc.gov.

The bottom line

With the high cost of bad credit auto loans, consumers hoping to reestablish their car credit need to be extra careful when choosing a used vehicle.

At Auto Net Financial we have helped thousands of people with bad credit begin the process of getting back on their feet while financing a new or low mileage used car through dealers that utilize a wide spectrum of lenders. We make no imaginary promises with regard to guaranteeing that your application will be approved. We will promise to do our best to see that your application is placed with a dealer that not only knows special finance, but one that is as close as possible to where you live.

If you have any additional questions, you can contact us by phone or email. You can also view a list of the basic requirements of a loan before you apply.

Your odds increase when you fill out an application

Why spend the time and the money driving from dealer to dealer when you can fill out our online credit application? Simply go to www.autonetfinancial.com to begin the process. Our application is SSL secured to safeguard your privacy and we are an accredited business with the Better Business Bureau. Our address, along with our toll free number, is listed on the Contact Us page.