The latest Kelley Blue Book used car outlook for 2011 indicates that low cost fuel efficient cars will be a good value for bad credit auto loan buyers
You need to know
If you have bad credit you may be wondering if buying a compact or subcompact car makes sense if you're financing it with a bad credit car loan. We know this because at Auto Credit Express we've been helping bad credit customers at the retail level for more than two decades.
A perfect example of our ongoing commitment to bad credit car buyers is our own web site that includes a bad credit car loan application – something we hit upon after seeing the embarrassment and disappointment that customers with bad credit usually face at dealerships that don't offer second chance auto loans.
But if you plan on financing your next car with auto loans for bad credit, does it make sense to finance a subcompact or compact car?
Financing a vehicle using car loans with bad credit means it's time to consider a small to midsize car to save on interest, insurance and fuel expenses. To accomplish this, most bad credit auto loan customers will pick an affordable used car, which is actually a great choice.
Over the past two decades, build quality has improved greatly so that 100,000 mile cars, with the proper maintenance, still have the capability to drive well mechanically. Advances in corrosion resistance also mean that the car body is still capable of being structurally sound. Even 200,000 miles on a vehicle does not necessarily indicate it's a wreck, as would have been the case 20 years ago.
Recently, Kelley Blue Book came out with a market report dealing with the outlook for used cars in 2011. One of their key findings: vehicles in the fuel-efficient segments will continue to drop in value.
Eric Ibara, director of residual value consulting, Kelley Blue Book had this to say about the findings: “The outlook for 2011 is bearish for fuel-efficient vehicles, as gas prices currently are projected to rise only moderately this year. Combined with the ongoing proliferation of fuel-efficient vehicles, the year-over-year change in 36-month residual values in the subcompact, hybrid/alternative fuel and compact car segments dropped 2.9 percentage points, 2.7 percentage points and 1.1 percentage points, respectively.”
What this means for bad credit buyers
If the projections made by Kelley hold true for 2011, this means that smaller fuel-efficient used cars will be even more affordable during the upcoming year. Since these are ideal vehicles for a bad credit auto loans, this means credit-challenged buyers could find more than a few bargains when it comes time to pick out a vehicle in the upcoming months.
We can help you find a dealer
At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a broad spectrum of lenders to ensure you have your best chance at getting approved for a car loan.
So if you are serious about getting your car credit back on track, you can begin a new chapter in your life by filling out our bad credit auto loan application now.