Extended Warranty Scams & Poor Credit Car Loans

Extended Warranty Scams & Poor Credit Car LoansFrom the September / October edition of The Quarter Roll
Extended Warranty Scams and Poor Credit Car Loans
by Steve Cypher

An extended warranty can save you money, especially during a bad credit auto loan, but beware of phone and internet scams from dishonest companies.

How we know
If you’re wondering about extended warranties for approved auto loans, you should know there are a number of fraudulent phone centers that represent themselves as warranty companies.

We are aware of this situation because Auto Credit Express has been involved in bad credit auto sales for over two decades. During that time, we’ve helped hundreds of buyers get approved for a poor credit car loan (while our online car loans bad credit web site has directed thousands of applicants to local dealers).

And while poor credit buyers can always use a local “tote the note” dealer, this won’t solve their auto credit problems since these dealers don’t report loans or loan payments to the credit bureaus (and the loans often result in repossession).

When buying a used car
With the high cost of new cars, most bad credit buyers will finance a used vehicle. Buying something one, two or three-year old helps avoid the 15 to 40 percent depreciation that usually happens during these years.

But even though used car quality is extremely high, we usually recommend purchasing a service contract – sometime called an extended warranty – that will cover the entire length of horrible credit auto loans.

There are many reasons for buying one if you’re on a tight budget and have bad credit, the most important of which is that it may help you avoid large, unforeseen car expenses – one of the biggest reasons a bad credit car loan results in repossession.

Read the rest of the story in the September / October 2011 edition here

 
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