For consumers with problem credit the type of car they choose can often mean the difference between successfully completing an auto loan and losing a car to repossession because it is unaffordable
What we know

Choosing the right kind of car is probably the most important decision people with questionable credit can make once they're received an auto loan approval.

Here at Auto Credit Express we understand this because for the past two decades we've been helping car buyers with bad credit find those new car dealers that are signed up with the right kind of lenders for their best opportunities at getting financed for car loans.

Understanding budget limitations

The fact is, in more than a few instances consumers with credit problems believe they can finance a, van, large sedan, or even a full-size SUV.  But even if they have the income and down payment to qualify for one of these types of vehicles (most do not), choosing one frequently leads to problems later on.

To begin with, the reason most people won't qualify for a relatively expensive vehicle is because the higher interest rates charged by higher-risk car lenders will put the monthly payments either at or over the limit of most budgets.

Add to this the fact that higher auto insurance rates and poorer fuel economy make larger cars, vans and trucks even more expensive to own.

But don't just take our word for it, no less a source than the American Automobile Association backs up the question of "how much will a car loan cost?" with these facts.

AAA survey

According to the most recent American Automobile Association (AAA) survey, fuel costs are still among the most important items that lead to increases in vehicle operating costs. Based on 15,000 miles per year, this is what the organization has determined are the average costs of operating a vehicle based on its size and type:

Small sedan – 43.3 cents per mile or $6,496 per year
Medium sedan – 56.2 cents per mile or $8,436 per year
Minivan – 62.0 cents per mile or $9,301 per year
Large sedan – 70.2 cents per mile or $10,530 per year
4WD SUV – 73.9 cents per mile or $11,085 per year

In addition to fuel, the above costs also take into consideration depreciation as well as tire and auto insurance expenses.

Yearly changes in operating costs

In addition to being the most affordable vehicles to own, the report also noted that "The small sedan category experienced the smallest increase of the five categories of vehicles, rising only 2.9 percent from last year to 43.3 cents per mile or $6,496 per year, based on 15,000 miles of yearly driving. The minimal increase was primarily due to the increased popularity of small sedans led by higher fuel prices. It resulted in the small sedan category being the only one where depreciation costs were lower than last year, falling 1.9 percent."

This means that buyers, regardless of their credit scores, can save over $2,000 a year simply by choosing a small new or used car over a midsize sedan – a savings that borrowers can use at the time of taking out a loan to lower the payment, shorten the loan term or free up cash to pay their other bills.

The Bottom Line

Financing a vehicle for consumers with problem credit means the time has come to get practical when it comes to choose a vehicle. By buying a less expensive car that's also cheaper to operate and making the monthly payments on time, chances are very good that the next one these people finance will qualify for a lower interest rate.

One more thing to keep in mind: Auto Credit Express specializes in helping applicants with problem credit find those dealers that can give them their best chances for approved auto loans.

So if you're ready to reestablish your car credit, you can begin now by filling out our online auto loans application.