Earlier this month Kelley Blue Book released its annual list of award winners for best vehicle resale value which should be checked before picking out a car for approved auto loans

What we have seen

There is a difference between the price of a car and its cost even when financing with terrible credit auto loans.

We believe you should know about this after spending nearly twenty years in the bad credit auto sales business here at Auto Credit Express.

In fact, we even built a web site so applicants can understand poor credit car loans and research such topics as buy here pay here dealers, repossession, as well as today's issue, new car resale values.

Cost is more than just price

To begin with, there is more to a car's cost than just its selling price. Over the lifetime of owning a vehicle, a number of things need to be taken into consideration: price, fuel efficiency, reliability, maintenance costs and, especially, its depreciation.

According to those in the know at Kelley Blue Book, during the typical ownership period of a car (five years), its loss in value (depreciation) is usually the biggest expense of all.

Depreciation is also one area where consumers can realize a significant savings simply by choosing a model that loses less of its value than a similar vehicle in the same category.

How Kelley Blue Book determines the winners

Based on projections made by the staff at Kelley, the awards, "honor vehicles expected to maintain the greatest proportion of their original retail price after five years of ownership."

Kelley adds that "Since depreciation (or loss of value) is typically a car buyer's primary expense during ownership, these awards, like all of kbb.com's new- and used-vehicle information, are designed to help consumers make more informed car-buying decisions."

Best new vehicles for poor credit car loans

We've chosen both the winners and top finishers from the Kelley Blue Book list in the two most affordable new car categories for those people with bad credit and approved auto loans: subcompact and compact cars.

So here are those vehicles along with comments from Kelley Blue Book:

2012 Best Resale Value: Subcompact Car

Best Subcompact Car
2012 Honda Fit
Why is the Honda Fit the best subcompact car when it comes to resale value? Because it's made by Honda. More specifically, it upholds Honda's signature formula for success by combining reliability, fuel efficiency, affordability and innovation. The Honda Fit has been a true crowd-pleaser since its inception and continues blending utility with driving fun in its second generation.

Resale Value
at 36 months: 59.0%
at 60 months: 40.0%

2nd Place Finisher:
2012 Volkswagen Golf
Combining almost Audi-like fit and finish and a solid design, the Volkswagen Golf is the most refined car in its class.

Resale Value
at 36 months: 56.0%
at 60 months: 38.8%

3rd Place Finisher:
2012 Nissan Versa
The Nissan Versa is a sub-compact sedan with a large amount of interior space and a low starting price of $10,990.

Resale Value
at 36 months: 55.6%
at 60 months: 38.4%

2012 Best Resale Value: Compact Car

Best Compact Car:
2012 Honda Civic
The Honda Civic sedan is facing stiffer competition than ever from an impressive mix of stylish, fun and fuel-efficient entries, but it's still arguably the best compact car of our time and is the 2012 Best Resale Value Award winner in the compact car category.

Resale Value
at 36 months: 56.5%
at 60 months: 41.0%

2nd Place Finisher:
2012 MINI Cooper
Last year's award winner for best compact car resale value is still as fun and frugal as ever.

Resale Value
at 36 months: 54.3%
at 60 months: 40.0%

3rd Place Finisher:
2012 Scion xB
Less quirky than it used to be, the Scion xB is now more noteworthy for its combination of room, flexibility and value.

Resale Value
at 36 months: 58.0%
at 60 months: 39.0%

As we see it

When buying either a new or a used car you should never confuse cost with price. The price is what you buy it for while the cost is what you'll end up paying over the life of the vehicle ownership.

According to Kelley executive Jack R. Nerad, "Choosing makes, models and options wisely now can help new-car shoppers keep additional money in their pocket down the road when they go to sell or trade-in the vehicle used."

Also remember that if you have bad credit Auto Credit Express can help you find a dealer for your best chance at approved auto loans - which means if you're serious about establishing your car credit, you can begin now by filling out our online auto loans application.