Consumer Car Buying Advice Blog

Earlier this month Kelley Blue Book released its annual awards for best vehicle resale value that should be taken into consideration when choosing a car for a bad credit auto loan

The right question

If you have bad credit you may be wondering which vehicle makes the most sense for a bad credit car loan. At least we think you should, because at Auto Credit Express we’ve been working with car buyers with bad credit for over twenty years and we think it’s an important question to ask.

In addition, after seeing the embarrassment and frustration that customers with bad credit often face at dealers that don’t offer second chance auto loans, we even created a web site featuring a bad credit auto loan application. Applicants are then matched with local dealers that specialize in customer credit issues.

The alternative, buying from a tote the note dealer, can be a problem because these dealers usually don’t report loans or payments to the credit bureaus. This type of loan can also result in a greater chance of repossession.

More than price

We also realize that there is more to a vehicle’s cost than just its selling price. Over the life of a car, a number of things need to be taken into consideration: price, fuel efficiency, maintenance costs and, above all, depreciation.

According to Kelley Blue Book, during the normal ownership period of a car (five years), the loss in value (depreciation) is the primary expense. It is also one area that consumers can realize a significant savings, simply by choosing a model that depreciates less than a similar vehicle in the same category.

How Kelley Blue Book determines the winners

According to Kelley, “Taking the time to research and choose vehicle makes, models and options wisely now can help new-car shoppers hold value down the road when they go to sell or trade-in the vehicle.” Based on projections made by the staff at Kelley, the awards, “honor vehicles expected to maintain the greatest proportion of their original retail price after five years of ownership.”

In case you were wondering, the list does not include low-volume vehicles or new cars with a Suggested Retail Price of more than $60,000 (except in the luxury and high-performance categories).

And the winners are:

2011 Best Resale Value: Brand

Subaru

2011 Best Resale Value: Luxury Brand

BMW

2011 Best Resale Value: By Vehicle Category

Subcompact Car:                  Honda Fit
Compact Car:                         MINI Cooper
Mid-Size Car:                          Honda Accord
Full-Size Car:                          Ford Taurus
Near-Luxury Car:                 Lexus IS
Luxury Car:                             Audi A5
Sports Car:                               Subaru Impreza WRX
High-Performance Car:      Ford Mustang GT
Hybrid/Alt Energy Car:     Volkswagen Golf TDI
Compact Utility Vehicle:   Honda CR-V
Mid-Size Utility Vehicle:    Toyota FJ Cruiser
Luxury SUV:                           BMW X5
Hybrid/ Alt Energy UV:    BMW X5 XDrive35d
Mid-Size Pickup:                   Toyota Tacoma
Full-Size Pickup:                   Ford F-Series Super Duty
Van:                                           Toyota Sienna
Wagon:                                      Subaru Outback

2011 Best Resale Value Top 10 Models
(in alphabetical order)

Audi A5
BMW X5
BMW X6
Honda CR-V
Jeep Wrangler
Lexus GX
Lexus RX
Subaru Outback
Toyota FJ Cruiser
Toyota Tacoma

The Bottom Line

When buying either a new or a used car even with auto loans for bad credit, you should never confuse cost with price. The price is what you pay for the vehicle, while the cost is what you will end up paying for it over the life of the vehicle ownership.

According to Jack R. Nerad, executive editorial director and executive market analyst with Kelley Blue Book’s kbb.com. “Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade-in the vehicle used.”

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their car credit at the same time. Our nationwide network of affiliate dealers specializes in bad auto credit.

So if you are serious about getting your car credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.

Tags: Bad Credit, bad credit auto loans, bad credit car loans, kelley blue book, New Cars, resale value

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