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.
December is typically a good time to buy a new car since manufacturers are set on attaining their year-end sales goals. Buyers with a trade-in could also benefit from higher than normal used car values, so it looks like this month might be a good time to trade in that old ride on a new one.
Before choosing a small car, credit-challenged borrowers might want to check out the latest “best and worst” list from Consumer Reports.