In some cases credit-challenged buyers may be given the option of financing a new car. Given this option, choosing a vehicle from this list of affordable new cars will enable these consumers to enjoy the benefits of a comprehensive new car warranty while keeping the payments within their budgets
Lacking a crystal ball, it’s difficult to determine the right time to buy a used car. And while used car prices may moderate this fall, there’s always the chance that, despite the availability of loans, interest rates could rise. In other words, holding off for a better price could be offset by an increase in interest rates.
CPO vehicles offer a number of advantages over those that aren’t certified. Just be sure paying the extra money for one makes sense.
Even with the rise in new car sales to consumers with bad credit, the majority of subprime car loans are still secured by a used car. This means that the latest announcement from the Department of Justice should be especially good news for credit-challenged car buyers, as it gives these purchasers another tool to prevent them from becoming a victim of fraud.
The latest program from both Hyundai and Kia is certainly a step in the right direction by offering free, updated FICO scores to borrowers. Unfortunately for most credit-challenged car buyers, not only is its focus too narrow, what’s left unsaid is the minimum credit score or profile required to qualify for it.
Even with credit scores that fall into the subprime range, a number of these car buyers may still qualify for the consumer rebates, bonus cash and, usually, dealer cash offered on these vehicles – savings that will help lower the monthly payment and overall finance costs of a subprime auto loan.
The trend toward longer loans and higher payments is not a good one – especially for borrowers with problem credit – as this increases interest charges as well as the length of time a borrower is upside down in the loan.
Borrowers with credit issues, in particular, should keep the loan term and amount financed as low as possible so they can trade out earlier and into another vehicle with a more manageable interest rate.