If you have bad credit or even if your budget is on the thrifty side, here's how the least expensive new cars in July 2017 stack up.

Financing New Cars with Poor Credit

In most cases, it's still cheaper to finance a used car. But if you consider the warranty and other perks, in the long run, financing one of the affordable new cars can make even more sense. So, with subprime lenders continuing to offer the option of financing a new car to many borrowers, we believe you should consider a smaller sedan or hatchback for a number of reasons:

  • These vehicles are affordable, so you can typically finance one for 60 months or less.
  • They can save you money on fuel and car insurance costs.
  • While smaller vehicles currently lose their value, as a percentage, more quickly than trucks or SUVs, because they cost less, the actual dollar amount of their depreciation is usually less than those more expensive vehicles.

More importantly, because they can typically be financed for a shorter term, even if you have credit problems, you may be able to trade out of one more quickly. So, if you've made timely payments on your car loan (along with the rest of your bills), this means you can finance your next car sooner—and typically at a lower interest rate.

Ford Focus is the Best of Our New Cars in July 2017

The good news for small car buyers is that because gas prices are still low, sales of inexpensive new cars have dropped. The result is that many manufacturers are offering large rebates on their smallest and most-affordable models.

One thing to keep in mind: in putting together this list, we considered only manual transmission models (you can typically figure an additional $1,000-$1,400 for an automatic). The base price includes the manufacturer's destination charges, but it doesn't include government fees and taxes.

2017 Kia Rio#10 – 2017 Kia Rio LX 1.6L 4-door sedan, 6-speed manual (2016 model pictured)
Base price - $15,060
Rebate - $1,000
Price before taxes - $14,060
2017 Hyundai Accent hatchback#9 - 2017 Hyundai Accent SE 1.6L 4-door hatchback, 6-speed manual
Base price - $15,880
Rebate - $2,000
Price before taxes - $13,880
2017 Hyundai Accent sedan#8 – 2017 Hyundai Accent SE 1.6L 4-door sedan, 6-speed manual (2015 model pictured)
Base price - $15,630
Rebate - $2,000
Price before taxes - $13,630
2017 Ford Fiesta#7 – 2017 Ford Fiesta S 1.6L 4-door hatchback, 5-speed manual (2014 model pictured)
Base price - $14,835
Rebate - $1,250
Price before taxes - $13,585
2017 Chevrolet Spark#6 – 2017 Chevrolet Spark LS 1.2L 4-door hatchback, 5-speed manual
Base price - $13,875
Rebate - $500
Price before taxes - $13,375
2017 Ford Fiesta sedan#5 - 2017 Ford Fiesta S 1.6L 4-door sedan, 5-speed manual (2015 model pictured)
Base price - $14,535
Rebate - $1,250
Price before taxes - $13,285
2017 Mitsubishi Mirage sedan#4 - 2017 Mitsubishi Mirage G4 ES 1.2L 4-door sedan, 5-speed manual
Base price - $14,860
Rebate - $2,000
Price before taxes - $12,860
2017 Ford Focus#3 - 2017 Ford Focus S 12.0L 4-door sedan, 5-speed manual - top deal
Base Price $17,650
Rebate - $5,000
Price before taxes - $12,650
2017 Mitsubishi Mirage hatchback#2 – 2017 Mitsubishi Mirage ES 1.2L 4-door hatchback, 5-speed manual
Base price - $13,860
Rebate - $1,500
Price before taxes - $12,360
2017 Nissan Versa#1 - 2017 Nissan Versa S 1.6L 4-door sedan, 5-speed manual
Base price - $12,875
Rebate - $1,000
Price before taxes - $11,875

The Bottom Line

Although many of these small cars represent great deals, this month, it's not the least expensive car that wins. The 2017 Ford Focus, with a $5,000 rebate, is certainly the deal of the month.

But no matter which one you choose, if you have poor credit, you should pick the shortest loan term possible and, once you've reestablished your car credit, you'll be in a better position, more quickly, to take out a new car loan at a better interest rate.

Here's another tip: Auto Credit Express has a nationwide network of car dealerships that have the lenders and know-how to help people in all types of credit situations. Our service is free, fast, and there's no obligation. See what we can do for you by filling out our car loan request form today.