Borrowers, especially those with past credit issues on tight budgets, should never confuse price with cost. Price is what you pay for a vehicle while cost includes the overall expenses including gas, insurance, maintenance and depreciation.
When offered the chance to buy a new car, we suggest credit-challenged buyers pick one that’s affordable, fuel efficient and inexpensive to insure. Consumers who follow this advice, once they’ve reestablished their credit, will be in a much better position for their next loan.
The Costco GM Holiday Sales Event represents a good deal for car buyers – but, unfortunately, it leaves out those vehicles that most shoppers with poor credit can afford.
This list proves that a number of safe, new cars are within the reach of many credit-challenged buyers. Keep in mind that most of the rebates listed expire at the end of the month.
Buying a new car is typically a great experience, but it can quickly sour if the vehicle turns out to be a lemon. If this happens, consumers – especially those with poor credit – should be aware of their rights under their particular state’s lemon law.
Although the average price of a new car is a bit more affordable, borrowers should choose a reasonable vehicle if they’re financing one with a subprime loan. Doing that as well as maximizing the down payment while keeping both the loan term and payment-to-income ratio to a minimum will go a long way towards ensuring the successful completion of a high-risk car loan.
Staying informed is an important piece of buying a car, and the following myths will show you why you shouldn’t take “expert theories” at face value.