All five vehicles we’ve chosen represent a good value and have a starting MSRP of around $19,000 or less, something that’s of particular importance to borrowers with credit issues.
The latest report from Equifax is positive news for car buyers with bad credit. But at the same time, these buyers need to be familiar with their credit situation, come into a loan with at least ten percent down and keep the loan term as short as possible to ensure success.
Not all borrowers with credit issues will be given the option of financing a new car, but if they are and it’s through one of the franchises listed above, chances are they won’t go wrong choosing any one of these high-quality, affordable, cars.
According to the latest market report from Edmunds.com, used subcompact, compact and midsize cars, many of which are ideal vehicles for credit-challenged borrowers, should be even more affordable this year. With this in mind, consumers who know their credit scores and reports and have a decent down payment might want to seriously consider pulling the trigger on a “nearly new” car.
Since each credit provider decides the acceptable level of risk they’re willing to take, it’s really hard to say what a “bad” or “good” credit score is. Despite this fact, there are generally accepted score levels within an overall credit scoring range that can be called “excellent”, “good”, “fair”, “poor” and “bad”.
Although pricing in the used car market remains strong, the affordable vehicles that are most appropriate for borrowers with bad credit are, at least at this point, more affordable than they were last year. This being the case, now might be a good time for buyers with tarnished credit to pull the trigger on buying a subcompact, compact or affordable midsize used car.
With the length of the average auto loan increasing, it’s important that borrowers with low credit scores keep their loan terms as short as possible. Not only will they save money on interest charges, this will also allow them to trade out of the car sooner and into a new loan with a better interest rate.