Choosing the right car can increase your chances of a successful bad credit car loan

We know

If you have bad credit and you're thinking of applying for auto credit now, it's time to start thinking about the kind of car to look for. We know, because for over two decades Auto Credit Express has helped credit-challenged car buyers establish their car credit.

During that time, we've personally helped hundreds of buyers at the retail level obtain a bad credit auto loan while helping them avoid a tote the note dealer (buyers outside our area can now fill out a bad credit car loan application on our web site) as well as counseling them on the best way to use a bad credit auto loan (buyers who don't sometimes even end up in repossession).

But once approved, there are often other choices that have to be made, not the least of which is picking the right kind of car.

Reliable and affordable

While many auto loans for bad credit buyers want to finance an SUV, van, or full-sized sedan, choosing one of these can be asking for trouble. Due to the high interest rates charged by bad credit lenders, this will move the monthly payments of these types of vehicles to the very limits of most budgets.

The added cost of both insurance and fuel will also make owning all three vehicle types even more expensive.

Auto club survey

In a recent survey by AAA, rising fuel prices were among the most important factors that lead to an increase in vehicle operating costs. According to the survey, based on 15,000 miles per year, these are the average costs of driving a vehicle based on 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

The final cost takes into consideration depreciation as well as fuel, tire, and auto insurance costs, all important factors with a bad credit auto loan.

Smaller cars

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 drivers could save over $2,000 a year simply by choosing a small sedan over a medium sedan – money that you could either put towards shortening the loan term, or giving you some breathing space until your second chance auto loan is paid off.

The Bottom Line

Financing a vehicle with a bad credit auto loan is no time to consider buying your “dream car”. Instead, it's time to focus on making your monthly payments on time and paying the rest of your bills, so that your next vehicle can be financed at a lower interest rate.

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their car credit through a nationwide network of affiliate dealers that specialize in bad auto credit.

So if you are serious about getting your credit back on track, you can begin the process right now by filling out our secure online bad credit auto loan application.