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Get a Car Loan in August

Borrowers with questionable credit checking out an affordable new car for an auto loan by end of the month should look over this list of the ten cheapest new cars to buy in August
Get a Car Loan in August
Fielding new car questions

Here at Auto Credit Express we often receive questions from car shoppers searching for online car loans that go something like this: “if I have crummy credit can I get an auto loan to finance a new car?”

In most cases the answer to the first part of the question is “yes”.

The answer to the second part is that it really depends upon the type of payment call the dealer receives from the lender. While this might not appear to be very helpful, it’s the only way it can be answered and we know why because we’ve spent the past twenty years helping car buyers with bad credit find those new car dealers that can give them their best opportunities for car loan approvals.

Auto loans with problem credit

Most buyers that have experienced recent credit issues will end up financing a used car with reasonable mileage. But in some instances these borrowers will be given a second option – one that usually has to do with their income, credit history and the programs offered by the lender that approves their application – that of an affordable new car.

Buying new definitely has its advantages. New cars are reliable, come with a manufacturer’s warranty and, in most states, are covered by new car lemon laws.

As when buying used, choosing the right type of new car such as a subcompact or compact can save on interest charges as well as fuel and car insurance costs. Because these vehicles are comparably affordable, choosing a shorter finance term will also enable these borrowers to be in a position to re-finance or take out a new loan at a lower interest rate sooner.

One more thing: according to Kelley Blue Book, although subcompact and compact used cars are becoming more affordable, their loss in value only amounts to 1 percent per month.

“While off-lease units have become slightly more abundant at auctions in recent months, increases in retail demand have helped to offset the impact of rising supply,” says Alec Gutierrez, senior market analyst for Kelley Blue Book. “Used-car values should continue to decline slowly and steadily through the rest of the summer, likely depreciating 1 percent per month on average.”

Most affordable new cars for August

As in the past, we’ve taken the most affordable new cars (most 2013 models except for the new 2014 Nissan Versa Note) and eliminated those that typically don’t make sense – such as the smart fortwo which is too small and not versatile enough for most

people. To vary the list as much as possible, we’ve also listed the least expensive trim level for each model. Since an automatic transmission is typically an additional $1,000 we believe most buyers needing one can do the math. Besides, it allows for more models on the list– although different body styles (sedan, hatchback) of the same model are listed as separate entries.

So here goes:

#10 – 2013 Kia Soul 1.6L base 4-door wagon, 6-speed manual
Base price – $15,175
Rebate – $0
Price before taxes – $15,175

#9 – 2013 Toyota Yaris L 1.5L 3-door hatchback, 5-speed manual
Base price – $15,165
Rebate – $0
Price before taxes – $15,165

#8 – 2013 Chevrolet Sonic 1.8L LS 4-door sedan, 5-speed manual
Base price – $14,995
Rebate – $0
Price before taxes – $14,995

#7 – 2014 Nissan Versa Note 1.6L S 4-door hatchback, 5-speed manual
Base Price $14,780
Rebate – $0
Price before taxes – $14,780

#6 – 2013 Ford Fiesta S 1.6L 3-door hatchback, 5-speed manual
Base price – $14,995
Rebate – $250
Price before taxes – $14,745

#5 – 2013 Kia Rio 1.6L LX 3-door hatchback, 6-speed manual
Base price – $14,550
Rebate – $0
Price before taxes – $14,550

#4 – 2013 Kia Rio 1.6L LX 4-door sedan, 6-speed manual
Base price – $14,350
Rebate – $0
Price before taxes – $14,350

#3 – 2013 Ford Fiesta 1.6L S 4-door sedan, 5-speed manual
Base price – $13,995
Rebate – $250
Price before taxes – $13,745

#2 – 2013 Chevrolet Spark LS 1.2L 3-door hatchback, 5-speed manual
Base price – $12,995
Rebate – $0
Price before taxes – $12,995

#1 – 2013 Nissan Versa S 1.6L 4-door sedan, 5-speed manual
Base price – $12,780
Rebate – $0
Price before taxes – $12,780

The least expensive car to buy in August remains the 2013 Nissan Versa sedan that sells for less than $13,000 before taxes and comes with one of the largest dealer networks in the U.S. Since this Versa is the entry-level model, even though it’s a 2013 it might take a bit of patience and some luck to find one.

As we see it

Most consumers with dinged up credit can usually qualify for a car loan if they meet the down payment, income, debt to income and payment to income requirements of a subprime lender. In some instances, they may even qualify for a new car.

Buyers that are given this option and choosing a vehicle from this list of affordable new cars such as the Ford Fiesta, Kia Rio or Toyota Yaris will enjoy the benefits of a comprehensive new car warranty and the reliability that goes along with that new car smell.

One more advantage for buyers with credit issues: Auto Credit Express matches people that have experienced difficulties with their auto credit with new car dealers that can offer them their best chances for approved car loans.

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

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