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Choosing the Best New Cars for Bad Credit Car Loans

We slice and dice the list of the best new cars according to Consumer Reports to come up those models that make the most sense for consumers with problem credit that are currently considering applying for an auto loan
Choosing the Best New Cars for Bad Credit Car Loans
What we know

Car buyers with bad credit would do well to follow the advice of the experts at Consumer Reports magazine if their auto loan approval includes the option of a new vehicle.

Here at Auto Credit Express we know this is good advice because we’ve spent the past twenty years helping car shoppers with poor credit looking for online car loans find those new car dealers that can offer them their best opportunities for loan approvals.

Because of this experience, we also know a thing or two about whose advice to follow when it comes time to pick out a vehicle.

Vehicle choices

When it comes to choosing a vehicle, an affordable subcompact, compact or entry-level midsize car can save buyers money on interest, insurance and fuel expenses. In most cases car buyers with less than perfect credit will decide that a used car is the way to go. But in some cases buyers are another option – one that usually depends on factors such as income, credit history and the programs offered by a particular lender – an affordable new car.

Buying new has a number of advantages. New cars are reliable and covered by a manufacturer’s warranty as well as the lemon laws in most states.

Best and worst lists

Earlier this Consumer reports published their annual new car issue that contains a number of categories including the “best new cars for under $25,000″ and the “best & worst values.”

We then sorted through both articles and eliminated those vehicles with an MSRP over $18,000 that, in most cases, wouldn’t fit the budgets of most credit-challenged consumers. Here is what we found:

The Best from both lists

Honda Fit (base)
MSRP $16,915

According to Consumer Reports, “The Fit has been an economical, reliable, and versatile hatchback ever since it went on sale in the U.S. in 2007. It packs a huge amount of usable space into a small package and has standard antilock braking and curtain air bags. But before 2011 electronic stability control (ESC) was available only on models with the optional navigation system.”

Scion xD
MSRP $16,900

The introduction to CR’s road test states that, “The Scion xD is smaller and less expensive than many other competing vehicles in this class. It is a boxier version of the Toyota Yaris with impressive interior space and a roomy rear seat for such a small car. There are a lot of standard features for its low price. Fuel economy is excellent. The xD makes a fine urban runabout, but its awkward driving position, choppy ride, and high noise levels detract from long drives.”

Other good small cars that made CR’s “best values” list:

Chevrolet Sonic LT (1.8) MSRP $17,455
Hyundai Accent GLS MSRP $16,320
Kia Rio EX (sedan) MSRP $17,545
Mazda Mazda2 Touring MSRP $17,845

The worst according to CR

Since used cars with poor reliability usually mean more out of pocket expenses for owners, car shoppers, especially those with poor FICO scores on a tight budget, should avoid financing these kinds of used cars.

If you’re looking for reliability, you might want to stay away from these four affordable vehicles that scored the lowest number of points in CR’s small car ratings: Smart ForTwo, Scion iQ, Chevrolet Spark (automatic), and Toyota Yaris.

The Bottom Line

Choosing a new car that’s highly-rated by Consumer Reports offers a number of advantages especially to people with less than perfect credit. It means they’ll be getting more bang for their buck as well as better reliability down the road.

One more thing that’s good to know: Auto Credit Express matches people that have experienced car credit difficulties with those new car dealers that can offer them their best chances for car loan approvals.

So if you’re ready to reestablish your auto credit, you can begin now by filling out our online car loan application.

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