Controlling Car Ownership Costsby Steve Cypher on Sunday, November 25th, 2012
One of the keys to successfully completing a high-risk car loan and moving the credit repair process along is understanding the total cost of vehicle ownership.
At Auto Credit Express we have come to realize how important this is after spending more than two decades helping car buyers with credit problems find dealers that can offer them the opportunity of an approval for a car loan.
That’s because once these applicants receive auto loan approvals it’s important they understand which of the vehicles they qualify for will be, in the long run, more affordable to own and operate.
Kelley Blue Book
Not that long ago Kelley Blue Book’s kbb.com published a report that looked at those vehicles with the best Total Cost of Ownership among cross-shopped models for both the Chevrolet Cruze and the Honda CR-V, two of the researched vehicles at the time on their website.
The CR-V, along with those vehicles cross-shopped with it, is probably too expensive for most buyers with credit issues to finance using a subprime lender.
But the Chevrolet Cruze, along with the vehicles it is cross-shopped with, could in many cases fit the budgets of car buyers with poor credit scores.
“With Total Cost of Ownership information, consumers can better understand the financial implications associated with the initial five years of owning a car,” said Juan Flores, director of vehicle valuation for Kelley Blue Book. “As Kelley Blue Book’s data reveals, depending on the model’s MSRP, fuel costs and other financial factors, other models on their consideration lists could offer a greater value over time.”
The following list includes the rankings of the top five vehicles with the lowest five-year ownership costs that were, according to kbb.com, crossed-shopped with the Chevrolet Cruze:
Rank Model 5-Year Total Cost of Ownership
1 Toyota Corolla $32,811
2 Hyundai Elantra $34,123
3 Chevrolet Cruze $34,705
4 Honda Civic $36,344
5 Ford Focus $36,591
6 Volkswagen Jetta $36,865
According to the folks at kbb.com, “The Chevrolet Cruze, a most-researched car on kbb.com, has become a top-selling vehicle in its segment and for General Motors. However, Kelley Blue Book’s data reveals that other models may offer competitive ownership costs during the initial five-year period.
On kbb.com, consumers in the market for a Chevrolet Cruze also are considering the Toyota Corolla and Hyundai Elantra. Both models provide lower ownership costs at $32,811 and $34,123, respectively. The Chevrolet Cruze sits in the No. 3 spot, followed by Honda Civic, Ford Focus and the Volkswagen Jetta.”
Depreciation costs are computed using KBB’s own residual values while it “calculates total ownership costs for new vehicles by applying a sophisticated valuation methodology along with critical financial data from third-party providers.”
The Bottom Line
If you find yourself in the position of having to reestablish your car credit, the vehicle you pick not only has to meet your transportation needs, it should also be affordable to own and operate.
If that’s the case we hope the information supplied by Kelley Blue Book will help in the decision process.
One more thing that’s helpful to know: Auto Credit Express specializes in matching consumers with poor auto credit with those new car dealers that can offer them their best chance for approved auto loans.
So if you’re ready to reestablish your good credit, you can begin now by filling out our online car loans application.