Consumer Car Buying Advice Blog

If you have bad credit and are realistic about what you can afford you might want to take advantage of new car incentives on the ten most affordable new cars to keep your monthly payments low for car loans with bad credit

Credit repair and new cars

If you have bad credit and you’re thinking of applying for auto loans for bad credit, you’re probably thinking of buying a used car. We’ve seen this situation before because here at Auto Credit Express we’ve been working with credit-challenged car buyers for over two decades. Knowing the embarrassment and frustration that customers with bad credit potentially face, we even developed a web site so that we can accept applications and match up these customers with local dealers that specialize in customer credit issues. This way, they’ll have the best chance of getting approved for a car loan, even if that means a bad credit auto loan.

The alternative, which usually means buying a vehicle from a tote the note car dealer, can be a problem because these types of dealers don’t report your payments to the credit bureaus. On the other hand, taking out a loan through a dealer with a bad credit lender and making a poor decision (such as choosing a vehicle that’s too expensive) can also create problems and might even result in repossession.

So as you can see, going through the bad credit car loan process successfully really does depend on the kind of car you choose to finance, which brings us to today’s topic.

Putting your dream car on the back burner

The fact of the matter is, most of our applicants rarely ask what kind of car they should finance with a bad credit auto loan. In most cases, they already know what they want and, unfortunately, it’s usually not a small to midsized car. But getting your dream car with a loan designed to reestablish your car credit is not the best idea. Here’s why:

While many bad credit applicants hope to buy a large crossover or another type of expensive car, buying these types of vehicles doesn’t make any sense right now. The high interest rates charged by bad credit lenders will put a payment on any one of these vehicles at the very edge of most budgets, while the cost of insurance and gas will make owning one of them even more expensive.

The alternative at this time is to consider a small to midsize car and finance it for the shortest term possible (just to give yourself some cushion, you could opt for a longer term and then add to or double up on your payments). By financing a car for a shorter term, the individual should be in a position to re-finance or purchase a newer vehicle in two years or less at a lower interest rate. By carrying this second contract for another two years, with other improvements in their credit, this person could be ready to finance their next vehicle (the dream or close to it) at prime or near prime interest rates.

New or used

In order to carry out this plan, most bad credit car loan customers probably will choose an affordable used car. But there is another option: choosing an affordable new car. This decision, as it turns out, also has its advantages.

Although new cars are usually more reliable than used cars, the added expense often puts them out of reach for many bad credit customers. Fortunately, new car incentives, usually in the form of “customer cash”, can not only lower the price of a new vehicle, it can also help contribute to the down payment requirements of many subprime lenders.

With almost three weeks left in October, bad credit auto loan buyers have plenty of time (at least on the 2011 models) to take advantage of the following deals on some very affordable new cars:

The top 10 least expensive new cars for October

Today, we’ve taken the time to combine the most affordable new vehicles in the U.S. with their current rebates to come up with the ten most affordable cars for the month of October, 2010. It should be noted that all vehicle prices include destination charges, but not the taxes or official fees that vary by state.

#10 – 2010 Toyota Yaris 4dr base
Base price – $13,655
October rebate – $1,500
Price before taxes – $12,155
Rarely does Toyota throw any money at its entry level car. This month, however, there is $1,500 in customer cash on any remaining 2010 models.

#9 – 2010 Toyota Yaris 2dr base
Base price – $13,355
October rebate – $1,500
Price before taxes – $11,855
The 2-door Yaris is $300 less than the 4-door. So if you prefer a hatchback to a sedan, you could spend less than $12,000 before taxes and fees on a Toyota.

#8 – 2010 Hyundai Accent GS
Base price – $12,715
October rebate – $1000
Price before taxes – $11,715
The Accent carries the same industry-leading warranty as Kia. As such, bad credit car loan buyers will probably not need to buy an extended service contract with this Hyundai.

#7 2010 Kia Rio 4dr base
Base price – $12,390
October rebate – $1,500
Price before taxes – $10,890
The Rio comes with Kia’s 5 year 60,000 mile basic warranty plus an additional 10 year, 100,000 mile power train warranty.

#6 – 2011 Nissan Versa 4dr 1.6 base
Base price – $10,740
October rebate – $0
Price before taxes – $10,740
The 2011 Versa is one of the better automotive values for October. Even without a rebate it still comes in at less than $11,000 before taxes and fees.

#5 – 2010 Nissan Versa 4dr 1.6 base
Base price – $10,730
October rebate – $0
Price before taxes – $10,730
The 2010 Versa is one of the really good car deals for October, although you have a better chance of scoring a 2011 model and, besides, for only $10 more, the newer model is a much better value.

#4 – 2010 Chevrolet Aveo 5 LS
Base price – $12,835
October rebate – $2500
Price before taxes – $10,335
The 5-door hatch version is a step up from the base Aveo and offers a few more amenities in addition to the added versatility and cargo space of a hatchback. Throw in a $2,500 rebate and you have a great value for anyone needing car loans with bad credit.

#3 – 2011 Hyundai Accent GL 2dr
Base price – $10,705
October rebate – $500
Price before taxes – $10,205
Imagine getting a new car for under $11,000 before taxes and one of the longest warranties in the business. Since it’s a 2011 model, you shouldn’t have too much of a problem finding one. And it’s great warranty means you probably won’t need an extended service contract.

#2 – 2010 Hyundai Accent Blue 2dr
Base price – $10,690
October rebate – $500
Price before taxes – $10,190
The Accent Blue was Hyundai’s least expensive 2010 model. As such, it may be difficult to find one on dealer lots right now. The good news is that for just a bit more cash, you can get a 2011 Accent GL – probably a better buy in the long run, anyway.

#1 – 2010 Chevrolet Aveo LS
Base price – $12,685
September rebate – $2,500
Price before taxes – $10,185
Even though it is a 2010 model, a $2,500 rebate, a selling price of just over $10,000 plus one of the largest dealer networks in the U.S. makes the 2010 Chevrolet Aveo LS a great buy and the most affordable vehicle for September.

The Bottom Line

New car incentives including rebates and customer cash are a great way to not only make a vehicle more affordable, but also contribute towards your down payment. In the case of the 2010 Chevrolet Aveo LS four-door, you can buy a vehicle that would normally have a retail delivered price of around $13,000 (in most states) for around $10,500 in most states, after all taxes and fees.

Everyone needs a car. Before you buy a car from a local tote the note car dealer, consider applying for a bad credit auto loan from Auto Credit Express, a leading national car buying service for people with bad credit. Our credit application is encrypted so your personal information is secure, and you can fill it out in the comfort and security of your home.

So why not begin the process of rebuilding your credit by filling out our online bad credit car loan application now.

Tags: Bad Credit, car, Credit Repair, new car incentives

This entry was posted and is filed under New Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.