Credit challenged consumers sometimes assume they can only finance a used car but for many a new car is also possible and Labor Day weekend may be the best time to buy
What we know
At Auto Credit Express we want applicants with bad credit to understand that their only vehicle choice may not be just a used car. We were reminded of this after reading an article from NADA Used Car Guide.
Besides that “new car” smell, buying new comes with a number of advantages including:
• A full warranty – Most come with a minimum 36 month 36,000 mile “bumper to bumper” warranty with no out of pocket expenditures for covered systems.
• Many warranties include additional perks such as roadside assistance for flat tires, gas and mechanical repairs.
• Most states have new car lemon laws that cover defects the dealer cannot fix.
• Most subprime lenders offer lower interest rates and longer terms for new cars.
Great new car deals Labor Day weekend
According to NADA Used Car Guide, the upcoming Labor Day weekend is an excellent time to buy a new car, as many manufacturers are offering savings to clear out 2014 inventory for incoming 2015 models.
But that’s not all, according to NADA a slowdown in sales means “manufacturers have dialed up incentive spending and many kicked off model year sell-down sales back in July to get a jump start on the competition.”
More good news for car shoppers with credit issues is that “some of the best deals can be found in the hotly contested compact and midsize car segments.” More importantly, cars in both of these categories are typically very affordable, even when financed with a subprime auto loan.
If you have a trade-in, there’s even more reason to buy now. According to Jonathan Banks, Executive Automotive Analyst at NADA Used Car Guide, “Dealers are hungry for quality used vehicles so they continue to make highly competitive trade-in offers.”
A word of caution
• The objective is to reestablish credit, not finance your dream car. Keep the payment below your maximum budget.
• Do your research at sites such as consumerreports.org for quality and reliability data.
• Pay attention to fuel economy
• Compare car insurance rates. If given a choice of vehicles that are similar in size, price and reliability, pick the one with the lowest rate.
The Bottom Line
If you qualify for one, a new car can be a good choice, provided you keep it well within your budget. If you plan on buying one in the next couple of months, we want you to know that the folks at NADA Used Car Guide believe that the Labor Day weekend will offer big savings to new car buyers.
Something else we want you to know: at Auto Credit Express specializes in helping consumers with problem credit find those dealers that can give them their best opportunities for car loan approvals.
So if you’re ready to establish your car credit, you can begin now by filling out our online auto loan application.