Consumers with problem credit considering an affordable new car this month should check out the following list of the ten cheapest new cars to buy in May

Auto loan and new car questions

Here at Auto Credit Express a question we get quite often from people looking for online auto loans, most with poor credit, is "if I have bad credit can I get a car loan?" In addition some of them also want to know if they can finance a new car.

In most cases the answer to the first question is "yes".

The answer to the second one is that it usually depends upon the payment call the dealer receives from the lender. While this answer might not seem that helpful, we know that it's accurate because we've spent over two decades helping car buyers with questionable credit find those new car dealers that can give them their best opportunities for approved auto loans.

Getting an auto loan with questionable credit

Most buyers that have experienced past credit issues will end up financing a used car with reasonable mileage. But in some instances these buyers have another option - one that usually depends on their income, credit history and the programs offered by the lender they get approved with – which is an affordable new car.

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

As with used cars, 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 they're affordable, choosing a shorter finance term also enables buyers to be in a position to re-finance or take out a new loan at a lower interest rate even sooner.

One more thing: according to a recent study by Kelley Blue Book, depending on the model a number of subcompact and compact new cars are nearly as affordable as their used counterparts.

"Used compacts have been in high demand with fuel prices nearly $3.42 per gallon nationally, and values have held strong as a result," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.  "A consumer looking to save at least $100 or more per month on a used car would need to consider a model-year 2009 or older, which likely would have 50,000 miles or more on the odometer.  While the difference between new and used pricing is relatively low for the segment, there are several models that offer nearly identical pricing whether new or slightly used."

Most affordable new cars for May

As in the past, we've taken the most affordable new cars (all 2013 models) and eliminated those that typically don't make sense – such as the smart fortwo (too small and not versatile enough for most buyers). To vary the list as much as possible, we've also stuck to the least expensive trim level for each model. Since an automatic transmission is typically an additional $1,000 we thought most buyers could do the math. Besides, it allows for more models on the list– although different body styles (sedan, hatchback) of the same model are listed separately.

Here they are:

#10 – 2013 Hyundai Accent 1.6L GLS 4-door sedan, 6-speed manual
Base price - $15,340
Rebate - $0
Price before taxes - $15,340

#9 - 2013 Kia Soul 1.6L base 4-door wagon, 6-speed manual
Base price - $15,175
Rebate - $0
Price before taxes - $14,650

#8 - 2013 Toyota Yaris L 1.5L 3-door hatchback, 5-speed manual
Base price - $15,165
Rebate - $0
Price before taxes - $15,165

#7 - 2013 Chevrolet Sonic 1.8L LS 4-door sedan, 5-speed manual
Base price - $14,995
Rebate - $0
Price before taxes - $14,995

#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 May remains the 2013 Nissan Versa sedan that sells for less than $13,000 before taxes and has 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 may take some patience finding one.

The Bottom Line

Most consumers with bruised credit can qualify for an auto loan if they meet the down payment, income, debt to income and payment to income requirements of higher risk lenders. In some instances, they may even qualify for a new car.

Buyers given this option and picking from this list of affordable new cars such as the Ford Fiesta, Kia Rio and Toyota Yaris will find it a great way to enjoy the reliability and comprehensive warranty coverage that goes along with that new car smell.

One more thing to keep in mind: at Auto Credit Express we match applicants with damaged credit with those franchised new car dealers that can give them their best chances for auto loan approvals.

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