We peruse the latest report from Kelley Blue Book and slice and dice it to come up with a list of cars that would be great for an auto loan for consumers with problem credit
What we know
One of the keys for a successful outcome of a subprime car loan is for borrowers with questionable credit to keep the total costs of vehicle ownership as affordable as possible.
Here at Auto Credit Express we realize the importance of this is because we've spent the past two decades helping car buyers with bad credit looking for online car loans find those new car dealers that can offer them their best opportunities for car loan approvals.
That's because once a loan request is approved these borrowers should know which of the cars they qualify for will be more affordable to own and operate.
Kelley Blue Book
Back in February we took note of the fact that Kelley Blue Book's kbb.com had unveiled their 2013 5-year cost to own award winners – those "2013 model-year vehicles and brands (in both luxury and non-luxury categories) with the lowest projected ownership costs."
The winners "are based on Kelley Blue Book's 5-Year Cost to Own data for new cars for the initial five-year ownership period."
"New-car shoppers often are most concerned with the upfront cost of a vehicle; however, consumers would be wise to consider their purchase from a more holistic standpoint by examining the total cost to own a vehicle over the initial five-year ownership period," said
Dan Ingle, vice president of vehicle valuations for Kelley Blue Book. "Kelley Blue Book's 5-Year Cost to Own information allows consumers to evaluate which brands and models make the most sense for their pocketbooks as they prepare for a major purchase decision in buying a new car. This year's winners provide the top options in multiple categories and at the brand level."
While many of the vehicles on the list are a little pricey for the budgets of most buyers with dinged credit, it does contain a number of affordable new cars that, in many cases, just might work.
Since the least expensive vehicles to own fall into the compact and subcompact categories, we rolled up our sleeves and came up with a number of choices from Kelly's list that could best fit the pocketbooks of credit-challenged borrowers.
Compact Car Winner
2013 Hyundai Veloster
5-Year Cost to Own: $30,902
According to Kelley, "There's a lot of style to love for well under $20,000 in the 2013 Hyundai Veloster. This eye-catching hatchback has three doors (one for the driver and two on the passenger side), technotainment galore, and a bounty of cargo room."
Runners-Up: 2013 Dodge Dart, 2013 Toyota Corolla
Subcompact Car Winner
2013 Scion iQ
5-Year Cost to Own: $27,006
Kelley states that "Scion's sub-sub-sub-compact iQ 2+2 city car won't quite make 100 horsepower or 40 miles per gallon, but you could park in a phone booth and it's the most affordable car you can own over 5 years."
Runners-Up: 2013 Chevrolet Spark, 2013 Mazda Mazda2
The Bottom Line
"With Total Cost of Ownership information, consumers can better understand the financial implications associated with the initial five years of owning a car," said Juan Flores, director of vehicle valuation for Kelley Blue Book. "As Kelley Blue Book's data reveals, depending on the model's MSRP, fuel costs and other financial factors, other models on their consideration lists could offer a greater value over time."
Car buyers in the process of establishing their auto credit should realize that the car they choose not only has to meet their transportation needs, but also be affordable to own and operate. We hope the information supplied by Kelley Blue Book and interpreted by us will help make this decision easier.
One more tip: At Auto Credit Express we match people that have experienced difficulties with their auto credit with new car dealers that can offer them their best opportunities for approved car loans.
So if you're ready to reestablish your car credit, you can begin now by filling out our online car loan application.