While new cars are generally becoming more affordable despite the slight dip in July, borrowers with tarnished credit would be smart to maximize their down payment while keeping both the loan term and payment-to-income ratio to a minimum. Typically this entails moderating their expectations and financing a very affordable car – at least until they’ve reestablished their credit.
The three vehicles we’ve chosen from AutoPacific’s list are not only winners in their class, they represent affordable values with starting MSRPs of less than $18,000 – a price point that’s important to borrowers with credit issues.
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.
With electric vehicles growing in popularity and gaining wider acceptance, it may not be long before this relatively new technology is affordable and convenient enough to be taken advantage of by almost everyone.
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.
There is a term in the finance world called being ‘underwater’ on your loan. This is, quite simply, owing more on the vehicle loan than the car is worth. This can happen when you put little or no down payment on the vehicle when you purchase it, or you have rolled a previous loan into the current one. Now you are in a position where you need a new car, and aren’t sure you will able to afford it.