Dependable Cars for Problem Credit Buyers

Using the 2013 Vehicle Dependability Study from JD Power and Associates we choose those vehicles that make the most sense for car loans for problem credit borrowers
Dependable Cars for Problem Credit Buyers
What we know

In our experience consumers with questionable credit have a better chance of successfully completing an auto loan if they place the most dependable cars at the top of their shopping lists.

Here at Auto Credit Express we’ve reached this conclusion after spending over twenty years helping car buyers with bad credit that have been searching for online car loans find those dealers that can offer them their best opportunities for car loan approvals.

The importance of vehicle dependability

The reason vehicle dependability is important is that the increased interest rates charged by subprime lenders generally leaves borrowers with less disposable income for car repairs.

The good news for these consumers is that, according to the latest information, the current crop of vehicles is more dependable than ever.

According to David Sargent, vice president of global automotive at J.D. Power and Associates, “The continuous improvement in long-term dependability means consumers should have more confidence in three-year-old vehicles, whether they are keeping their current vehicle or shopping for a used car, truck, crossover or SUV. This means there are a lot of dependable off-lease vehicles in the used-vehicle market. It also means that owners who keep their vehicle beyond the manufacturer’s warranty period are able to have greater peace of mind that vehicles are becoming increasingly more dependable. That said, it is virtually certain that new vehicles being sold today will be even more reliable in three years.”

2013 Vehicle Dependability Study

The J.D. Power and Associates Vehicle Dependability Study (VDS) measures problems experienced by the original owners of three-year-old vehicles (in this case 2010 models) during the past twelve months. It measures overall dependability by the number of problems experienced per 100 vehicles (PP100). This year, the study was “based on responses from more than 37,000 original owners of 2010 model-year vehicles after three years of ownership” and conducted between October and December 2012.

To put these findings in perspective, the 2013 study showed overall vehicle model dependability averaged 126 problems per 100 vehicles (or 126 PP100 in Power jargon). This marks a five percent improvement over 2012 and the best results since the inception of the study in 1989.

Choices for credit challenged borrowers

For buyers that have experienced credit problems in the past, we’ve listed the winners and top finishers in the three most affordable categories – subcompact and compact cars and compact multi-purpose vehicles:

Top Three Models per Segment

Sub-Compact Car

Highest Ranked: Scion xD
Toyota Yaris
Hyundai Accent

Compact Car

Although the highest ranked compact vehicle in the survey was the Toyota Prius, both new and used examples are usually too expensive for most credit-challenged borrowers. Fortunately, the next two finishers are typically more affordable:

Ford Focus
Mazda MAZDA3

Compact Multi-Purpose Vehicle

Highest Ranked: Scion xB
Chevrolet HHR
Kia Soul

The report also came to three other conclusions:

•    The perception that all-new or redesigned models can’t be as dependable as those that have been on the market for a year or more is not accurate. Just because a model is new to the market or has been recently redesigned doesn’t necessarily mean it won’t be as reliable. In fact, dependability of all-new and redesigned models is at a record high, according to 2013 VDS data.

•    Dependability of three-year-old models is at an all-time high. If you can’t afford a new vehicle, or simply don’t want one, you should feel confident when buying a certified pre-owned (CPO) vehicle. Whether buying a CPO vehicle or not, be sure to check quality, appeal and dependability ratings

•    Improvements in vehicle dependability have been made by both domestic and import brands, and the gap between the two is narrowing. Perceptions of dependability should not be based purely on vehicle origin—consumers should research a variety of sources in order to make a decision consistent with the current reality of the market.

As we see it

One of the keys to successful credit repair using an auto loan is financing a dependable vehicle. The latest study from J.D. Powers and Associates should help problem credit car shoppers select the right car.

Another tip: Auto Credit Express matches consumers that have experienced car credit issues with dealers that can offer them their best chances for approved car loans.

So if you’re ready to establish your auto credit, you can begin now by filling out our online car loan application.

Posted on September 14, 2013 by in Used Cars
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