We took the Kelley Blue Book 2016 Best Resale Value award winner list and sliced and diced it to come up with the best vehicles for consumers with poor credit.
Understanding the difference between price and cost
Here at Auto Credit Express we believe that credit-challenged consumers should be aware of that fact that there’s a definite difference between the price of a new car and cost of a new car. The price is what you pay for it. The cost, on the other hand, has to do with the total overall expenses a vehicle with incur over the lifetime of ownership. These expenses are affected by a vehicle’s fuel efficiency, reliability, maintenance needs and, in particular, its depreciation.
According to Kelley Blue Book, "Depreciation often is the greatest expense incurred by drivers during the first five years of vehicle ownership."
But the good news is that this is one area where buyers, even those with poor credit, can reduce a vehicle's costs simply by choosing one that depreciates less than others in the same class.
2016 KBB Best Resale Value Awards
Kelley hands out their yearly Best Vehicle Value Awards to “recognize automakers' outstanding achievements in producing vehicles that best retain their value over the first five years (60 months) of new-vehicle ownership."
We took the latest list and whittled it down to the winners and top finishers in the two most affordable segments - subcompact and compact cars. Here they are along with comments from Kelley Blue Book:
2016 KBB Best Resale Value: Subcompact Car
Best Subcompact Car: 2016 Honda Fit
Honda’s subcompact Fit is a repeat winner in 2016 and "is a segment standout any way you look at it" including an EPA highway mileage figure of 41 mpg. Prices start at under $17,000.
at 36 months: 53.3%
at 60 months: 37.0%
2nd Place Finisher: 2016 Toyota Yaris
"Combined with the automaker's reputation for quality and longevity, the low price and high resale value of the Toyota Yaris qualify it as a smart financial decision."
at 36 months: 43.2%
at 60 months: 31.6%
3rd Place Finisher: 2016 Scion iA
"Well-equipped at its base sticker price of around $16,000, the new-for-2016 Scion iA also delivers highway fuel economy up to 42 mpg and excellent resale values."
at 36 months: 46.0%
at 60 months: 31.0%
2016 Best Resale Value: Compact Car
Best Compact Car: 2016 Subaru Impreza
For the third year in a row the latest Subaru Impreza takes compact car honors. "The country's most affordable all-wheel-drive vehicle is also a well-built, long-lasting compact car that will appeal to used-car shoppers for years down the road."
at 36 months: 57.4%
at 60 months: 43.4%
2nd Place Finisher: 2016 Honda Civic
"Impressively redesigned for 2016, the Honda Civic is a resale value standout and the Kelley Blue Book Overall Best Buy of 2016."
at 36 months: 56.8%
at 60 months: 42.0%
3rd Place Finisher: 2016 Toyota Corolla
"For the most value-minded among us, the famously reliable, dependable, affordable Toyota Corolla gets even more appealing as a used car -- which makes it a smart choice as a new car."
at 36 months: 52.4%
at 60 months: 40.5%
The Bottom Line
Car buyers, especially those with poor credit, should understand the importance of price versus cost when picking out a new car. KBB’s Jack R. Nerad has put it this way: "Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade-in the vehicle used."
Here's another tip: if you have poor credit, you should know that Auto Credit Express specializes in placing car buyers like you with dealers that can give you your best chance at a car loan approval.
So if you're ready to take that first step, you can begin now by filling out our secure online auto loan application.