While it may be tempting to try to get as much car as you can get, it is a better plan to buy the car that you can realistically afford. Even if your income will technically cover a higher payment, will you be left with enough money to cover the costs associated with ownership? It is also important to have at least a little money to put back every month in case you are forced to deal with an emergency expense.
According to Consumer Reports, credit-challenged buyers would be doing themselves a favor by avoiding these six vehicles. Despite their affordable prices, their faults include noisy cabins, slow acceleration, poor ride quality and unacceptable scores on the IIHS small-overlap crash tests.
Consumers with credit issues who choose one of these affordable cars with the shortest loan term possible will find that once they’ve reestablished their credit, they’ll quickly be in a better position for their next loan.
Not only is each of these vehicles among the best buys in their respective segments representing a good value for your vehicle dollar, all have a starting MSRP of under $20,000 – making them particularly appealing to credit-challenged borrowers. In addition, according to U.S. News, any one of them would be a good choice for a new vehicle.
This is an terrible situation to find yourself in: You take out a loan to purchase a car, only to figure out a couple of months later that you really can’t afford to make the payments. What can you do? You have a few options open, but the most important thing is that you take some kind of action because involuntary repossession is going to be the least desirable outcome.
If you aren’t able to put up a down payment that covers that initial hit in value, you could find yourself in a frustrating situation if you need to sell or trade in the car after a couple years and still owe money on the car loan. So, what causes this drastic drop in value? This reduction in value is known as depreciation, and pretty much everything you buy suffers from it. In the case of automobiles, new models are rolled out, and advances in driving technology are made.