Car Ownership Costs and Poor Credit Buyersby Steve Cypher on Tuesday, February 5th, 2013
For credit challenged car buyers who find themselves on a tight budget we checked out the latest report from Kelley Blue Book and sliced and diced it to come up with a list of cars just for you
Credit problems and car budgets
One of the keys to successfully completing a high-risk car loan and moving the credit repair process along is keeping the total costs of vehicle ownership under control.
At Auto Credit Express we’ve come to realize how important this is after spending more than twenty years helping car buyers with bad credit find the right kind of new car dealers that can offer them their best chances for auto loan approvals.
That’s because once the loan is approved it’s also important to know which of the vehicles they qualify for will, in the long run, be more affordable to own and operate.
Kelley Blue Book
Earlier today, Kelley Blue Book’s kbb.com announced their 2013 5-year cost to own award winners – those “2013 model-year vehicles and brands (in both luxury and non-luxury categories) with the lowest projected ownership costs.” The winners “are based on Kelley Blue Book’s 5-Year Cost to Own data for new cars for the initial five-year ownership period.”
“New-car shoppers often are most concerned with the upfront cost of a vehicle; however, consumers would be wise to consider their purchase from a more holistic standpoint by examining the total cost to own a vehicle over the initial five-year ownership period,” said Dan Ingle, vice president of vehicle valuations for Kelley Blue Book. “Kelley Blue Book’s 5-Year Cost to Own information allows consumers to evaluate which brands and models make the most sense for their pocketbooks as they prepare for a major purchase decision in buying a new car. This year’s winners provide the top options in multiple categories and at the brand level.”
While many of the vehicles on Kelley’s list are too expensive for most buyers with questionable credit due to the higher interest rates charged by subprime lenders, there are a number of more affordable new cars that, in many cases might fit the budgets of car buyers with poor credit scores.
So we’ve decided to take the information from the report and slice and dice it to present those vehicles that will best fit the pocketbooks of car buyers with less than perfect credit.
Since the least expensive vehicles to own fall into the compact and subcompact categories, we listed the top cars that fall into these categories.
2013 Hyundai Veloster
5-Year Cost to Own: $30,902
According to Kelley, “There’s a lot of style to love for well under $20,000 in the 2013 Hyundai Veloster. This eye-catching hatchback has three doors (one for the driver and two on the passenger side), technotainment galore, and a bounty of cargo room.”
2013 Scion iQ
5-Year Cost to Own: $27,006
Kelley states that “Scion’s sub-sub-sub-compact iQ 2+2 city car won’t quite make 100 horsepower or 40 miles per gallon, but you could park in a phone booth and it’s the most affordable car you can own over 5 years.”
Runners-Up: 2013 Chevrolet Spark, 2013 Mazda Mazda2
The Bottom Line
We also agree with this statement made in another press release: “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.”
Car buyers in the position of having to reestablish their auto credit need to realize that the vehicle they pick not only has to meet their transportation needs, it should also be affordable to own and operate. That being the case we hope the information supplied by Kelley Blue Book and interpreted by us will help in the decision process.
One more thing that’s helpful to know: Auto Credit Express matches applicants that have experienced car credit issues with dealers that will give them their best chances for approved auto loans.
So if you’re ready, you can take the next step now by filling out our online auto loans application.