Best Cars for Buyers with Poor Creditby Steve Cypher on Wednesday, February 13th, 2013
When it comes down to it, consumers applying for auto loans should place the most dependable cars at the top of their shopping lists especially if they have questionable credit.
Certainly at Auto Credit Express we believe this should be the case and we’ve come to this conclusion after spending the past two decades helping buyers with less than perfect credit find those new car dealers that can give them their best opportunities for auto loan approvals.
We’ve also found it to be true that with the increased rates charged by lenders, overall vehicle dependability plays an even more important role in the successful completion of these high risk car loans.
The good news according to the latest automotive industry report is that cars are more dependable than ever.
According to David Sargent, vice president of global automotive at J.D. Power and Associates, “The continuous improvement in long-term dependability means consumers should have more confidence in three-year-old vehicles, whether they are keeping their current vehicle or shopping for a used car, truck, crossover or SUV. This means there are a lot of dependable off-lease vehicles in the used-vehicle market. It also means that owners who keep their vehicle beyond the manufacturer’s warranty period are able to have greater peace of mind that vehicles are becoming increasingly more dependable. That said, it is virtually certain that new vehicles being sold today will be even more reliable in three years.”
2013 U.S. Vehicle Dependability Study
The Vehicle Dependability Study (VDS) measures problems experienced by the original owners of three-year-old vehicles (in this case 2010 models) during the past twelve months. J.D. Power and Associates measures overall dependability by the number of problems experienced per 100 vehicles (PP100). This year, the study was “based on responses from more than 37,000 original owners of 2010 model-year vehicles after three years of ownership” and conducted between October and December 2012.
To put their results in perspective, the 2013 study showed overall vehicle model dependability averaged 126 problems per 100 vehicles (or 126 PP100 in Power jargon). This marks a five percent improvement over last year and the lowest since the inception of the study in 1989.
Choices for buyers with bad credit
For buyers that have experienced credit problems in the past, we’ve listed the winners and top finishers in the three most affordable categories – subcompact and compact cars and compact multi-purpose vehicles:
Top Three Models per Segment
Highest Ranked: Scion xD
Although the highest ranked compact vehicle in the J.D. Power VDS was the Toyota Prius, both new and used examples of this car are usually too pricey for most credit-challenged car buyers. Fortunately, the next two finishers are typically more affordable:
Compact Multi-Purpose Vehicle
Highest Ranked: Scion xB
The report also came to three other conclusions:
• The perception that all-new or redesigned models can’t be as dependable as those that have been on the market for a year or more is not accurate. Just because a model is new to the market or has been recently redesigned doesn’t necessarily mean it won’t be as reliable. In fact, dependability of all-new and redesigned models is at a record high, according to 2013 VDS data.
• Dependability of three-year-old models is at an all-time high. If you can’t afford a new vehicle, or simply don’t want one, you should feel confident when buying a certified pre-owned (CPO) vehicle. Whether buying a CPO vehicle or not, be sure to check quality, appeal and dependability ratings
• Improvements in vehicle dependability have been made by both domestic and import brands, and the gap between the two is narrowing. Perceptions of dependability should not be based purely on vehicle origin—consumers should research a variety of sources in order to make a decision consistent with the current reality of the market.
The Bottom Line
One of the keys to successfully completing the subprime auto loans process is choosing a dependable vehicle to finance. With that being said, the latest study from J.D. Power and Associates should help these types of car shoppers in selecting the right car.
Another tip for those buyers: Auto Credit Express specializes in helping applicants with car credit issues find dealers for their best chances at approved auto loans.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online auto loans application.