Your credit is damaged, but you’re still interested in buying a brand new car. Is this even possible? It may be, but your success will depend on a few factors. If your credit is on the good side of bad, and you’re willing to be realistic about your new car purchase, then you can expect to be able to get financed for a never-before-owned vehicle.
Credit-challenged borrowers who choose one of these affordable cars and pick the shortest loan term possible will find that, once they’ve reestablished their credit, they’ll be in a much better position for their next loan.
Hyundai’s renewed partnership with the free social savings website BoostUp represents a great opportunity for credit-challenged borrowers to save up even more money towards a down payment on an affordable new car.
We take the Kelley Blue Book 2015 Best Resale Value award winner list and slice and dice it to come up with the best vehicles for consumers who are credit-challenged.
But while the kbb.com list covers the gamut of vehicles from small to large (and everything in-between), since credit-challenged buyers are especially price sensitive, we decided to concentrate on the most affordable category: small cars.
Let’s start by talking about what the typical down payment suggestions are for a new car. Some say 20%, while others say the average is closer to 12%. This means that for a vehicle in the $10,000 to $15,000 range, you will need to pony up anywhere from $1,200 to $3,000 for a down payment on a car. When you’re on a tight budget, coming up with this amount may prove problematic.
Borrowers with bad credit would do well to choose one of these affordable cars – vehicles that are also fuel efficient and inexpensive to insure – if they’re buying new. Opting for the shortest loan term possible, once they’ve reestablished their credit they’ll be in a much better position for their next loan.