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Top Cheap New Cars for Bad Credit Buyers

To keep ownership costs during an auto loan as affordable as possible we take Kiplingers latest list of the ten cheapest cars to own and fine tune it for car buyers with questionable credit
Top Cheap New Cars for Bad Credit Buyers
Our experience

For borrowers with bad credit who qualify for a new car loan it’s especially important to keep in mind the overall ownership cost if given a choice of vehicles.

At Auto Credit Express we realize how important this can be because for more than twenty years we’ve been working with car buyers that have experienced problem credit that are searching for online auto loans by helping them find those new car dealers that can give them their best chances for an auto loan approvals.

The price is not the cost

If the lender believes they qualify for a new car these borrowers also need to realize that more than just the selling price of the vehicle should be considered. Taking a snapshot of the first 5 years of ownership, a number of expenses in addition to the monthly payment have to be considered: fuel efficiency, reliability, maintenance costs and, in particular, a vehicle’s depreciation.

Back in February, Jessica L. Anderson from Kiplingers published her annual listing of the ten cheapest cars to own in 2013. The analysis is based on data from Vincentric with fuel costs based on $3.23 per gallon of gasoline and 15,000 miles per year of both city and highway driving.

Fine tuning

In most cases in order to make lists like these more relevant to credit-challenged car buyers we usually have to do some fine tuning. But in this case even though there was one vehicle, the Scion iQ, that is probably too small for most families, we decided to leave it in for the sake of accuracy.

The winners

Typically, these vehicles fall into the two most affordable new car categories (an important factor for people with tarnished credit) – subcompact and compact cars. We’d also like to note that the total 5-year ownership cost is based on a 5-year loan at 2.76% and a 15% down payment. Although this cost will be higher for consumers with poor credit, the relative cost differences remain the same.

10. Toyota Corolla L 4dr
5-year fuel cost: $9,219
MPG: City: 27; Hwy: 34
Maintenance and repairs: $3,902
Cheapest Cars to Own Total 5-year ownership cost: $30,435

9. Kia Forte LX 4dr
5-year fuel cost: $9,665
MPG: City: 25; Hwy: 34
Maintenance and repairs: $3,326
Cheapest Cars to Own Total 5-year ownership cost: $29,769

8. Ford Fiesta S 4dr
5-year fuel cost: $8,369
MPG: City: 29; Hwy: 39
Maintenance and repairs: $4,469
Cheapest Cars to Own Total 5-Year ownership cost: $29,727

7. Scion iQ 2dr hatch
5-year fuel cost: $7,528
MPG: City: 36; Hwy: 37
Maintenance and repairs: $4,131
Cheapest Cars to Own Total 5-year ownership cost: $29,490

6. Hyundai Accent GLS 4dr
5-year fuel cost: $8,725
MPG: City: 28; Hwy: 37
Maintenance and repairs: $3,044
Cheapest Cars to OwnTotal 5-year ownership cost: $29,474

5. Kia Soul Base 4dr hatch
5-year fuel cost: $10,151
MPG: City: 25; Hwy: 30
Maintenance and repairs: $3,484
Cheapest Cars to OwnTotal 5-year ownership cost: $29,338

4. Toyota Yaris 2dr hatch
5-year fuel cost: $8,278
MPG: City: 30; Hwy: 37
Maintenance and repairs: $3,777
Cheapest Cars to OwnTotal 5-year ownership cost: $28,685

3. Kia Rio 4dr hatch
5-year fuel cost: $8,115
MPG: City: 29; Hwy: 37
Maintenance and repairs: $3,276
Cheapest Cars to OwnTotal 5-year ownership cost: $28,516

2. Chevrolet Spark LS 4dr hatch
5-year fuel cost: $7,963
MPG: City: 32; Hwy: 38
Maintenance and repairs: $4,202
Cheapest Cars to OwnTotal 5-year ownership cost: $27,871

1. Nissan Versa S 4dr
5-year fuel cost: $9,017
MPG: City: 27; Hwy: 36
Maintenance and repairs: $3,971
Cheapest Cars to OwnTotal 5-year ownership cost: $27,405

The Bottom Line

Car buyers, especially those with blemished credit, should never confuse price with cost. The price is what you pay for a car, while the cost includes all the expenses involved with ownership.

One thing that isn’t confusing: Auto Credit Express specializes in matching applicants with auto credit issues to dealers that can offer them their best chance at getting approved auto loans.

So if you’re ready to begin that process, you can start it now by filling out our online auto loan application.

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