Increasing your bad credit car loan monthly payment by adding a service contract might not seem like a good idea but it could end up saving you hundreds of dollars in unexpected bills.
An added expense
Here at AutoNet Financial, we recommend that if you are purchasing a vehicle with a bad credit car loan, you also seriously consider adding a vehicle service contract to your loan payment. Why would we do that? For most people with a limited income and bad credit, purchasing a vehicle stretches a budget that is already tight. Why, then, should you spend the extra money, and increase your monthly payment, by buying a vehicle service contract?
Avoid unforeseen expenses
We know that you’ve heard these words before, but a service contract is much like an insurance policy. When you buy one, you are betting that your car is going to break, while the service contract company is betting that it won’t. Given that vehicles are comprised of thousands of different parts, which side of the argument would you rather be on?
The fact is, even though cars today are more reliable than they were in the past, modern vehicles are also much more complex. Computerized engine management systems and safety systems make your car more fuel efficient and safer, but when something goes wrong with them, they are much more expensive to repair.
Your expenses
Which brings us to our point: isn’t it easier to plan on spending an extra $35 a month, every month, on your car payment than having to come up with $300 or more – right now – to replace an electronic part on your car in order to get it running so that you can drive to work?
The Bottom Line
The tighter your budget, the more important it is to avoid unexpected expenses. Do yourself a favor and help avoid a situation that could seriously impact your ability to repay your loan (if you can’t get to work, you can’t pay your expenses), especially if you’re planning on purchasing a used car. All we’re asking is that you consider a service contract if you need to finance a car with a bad credit car loan, and if you do, be sure that it covers the entire loan term. You will find that it is well worth the expense.
At AutoNet Financial, our business is to help people with bad, blemished, bruised and tarnished credit buy a car and reestablish their car credit at the same time. For more information regarding the bad credit car loan application process, visit our web site at www.autonetfinancial.com.
