If you are a consumer with bad credit and realistic expectations you can take advantage of a number of new car incentives on these ten affordable vehicles to keep your monthly payments low and your interest expenses down on car loans with bad credit

Credit repair using a new car

At Auto Credit Express we are in the business of helping people reestablish their auto credit by filling out our online credit application and financing either a new or a newer pre-owned car with auto loans for bad credit. By doing this, many of our applicants have been able to raise their credit scores and reestablish their car credit by financing a vehicle through one of our affiliate dealers.

But the process of reestablishing your auto credit can be more costly than it needs to be if you choose the wrong car. A vehicle that's too expensive can also stretch your budget and could even result in repossession. If this happens, your only remaining choice is usually a tote the note dealer. It also means that rebuilding your auto credit has to be put on hold for at least a year, since most bad credit auto loan lenders will only consider applicants with a repossession on their credit reports that's more than a year old.

Asking about the right vehicle

The fact of the matter is, most of our applicants rarely ask what kind of car they should get with a bad credit auto loan. They most often already know what they want and, unfortunately, it's usually not a small to midsized car. But getting your dream car with a loan designed to reestablish your car credit is not the best idea. Here's why:

Forget about your dream car

While many credit challenged applicants hope to buy a large crossover or another type of expensive car, buying these types of vehicles doesn't make any sense right now. The high interest rates charged by bad credit lenders will put a payment on any one of these vehicles at the very edge of most budgets, while the insurance costs will make owning one of them even more expensive.

Your alternative at this time is to finance a small to midsize car and financing it for the shortest term possible (just to give yourself some cushion, you could also take it out for a longer term and then double up on payments). By financing a car for a shorter term, you should be in a position to re-finance or purchase a newer vehicle in two years or less at a lower interest rate. You then carry this second contract for another two years and, with other improvements in your credit, you could be ready to finance the car of your choice at close to normal interest rates.

Deciding on new or used

In order to carry out this plan, most bad credit car loan customers will choose an affordable used car. But there is another option: choosing an affordable new car also has its advantages.

Although new cars are usually more reliable than used cars, the added expense often puts them out of reach for many bad credit customers. Fortunately, new car incentives, usually in the form of “customer cash”, can not only lower the price of a new vehicle, it can also contribute to the down payment requirements of many subprime lenders.

With nearly three weeks left in September, bad credit auto loan buyers still have time to take advantage of the following deals on some very affordable new cars:

The top 10 least expensive new cars for September

Today, we've taken the time to combine the most affordable new vehicles in the U.S. with their current rebates to come up with the ten most affordable vehicles for the month of September, 2010. It should be noted that all vehicle prices include destination charges, but not the taxes or official fees that vary by state.

#10 – 2009 Kia Rio5 LX
Base price - $14,020
September rebate - $2,500
Price before taxes - $11,520
The Rio5 is the hatchback version of Kia's most affordable model. Add in the best warranty in the industry along with a hefty $2,500 rebate and you have a real winner.

#9 – 2010 Kia Rio 4dr base
Base price - $12,390
September rebate - $1,000
Price before taxes - $11,390
A $1,000 rebate plus one of the best warranties in the industry makes the 2010 Kia Rio base model an excellent value.
#8 2009 Kia Spectra 4dr base
Base price - $14,245
September rebate - $3,000
Price before taxes - $11,245
The Spectra is a larger car than either the Rio or the Yaris and comes with Kia's 5 year 60,000 mile basic warranty plus an additional 10 year 100,000 mile power train warranty.

#7 – 2010 Nissan Versa 4dr 1.6 base
Base price - $10,730
September rebate - $0
Price before taxes – $10,730
The 2010 Versa is one of the better automotive values for September, coming in at less than $11,000 before taxes and fees.

#6 – 2011 Nissan Versa 4dr 1.6 base
Base price - $10,730
September rebate - $0
Price before taxes – $10,730
The Versa is one of the really good automotive values for September. Even though there is no rebate this month it still comes in at less than $11,000 before taxes and fees and it's a 2011 model to boot.

#5 – 2009 Hyundai Accent 4dr base
Base price - $10,690
September rebate - $0
Price before taxes - $10,690
Imagine getting a new car for under $11,000 before taxes and one of the longest warranties in the business. Although it is getting harder to find one of these, the 2009 Hyundai Accent is the most affordable car for September and should be on any bad credit car shopper's short list of vehicles.

#4 – 2010 Chevrolet Aveo 5 LS
Base price - $12,835
September rebate - $2500
Price before taxes - $10,335
The 5-door hatch version is a step up from the base Aveo and offers a few more amenities in addition to the added versatility and cargo space of a hatchback. Throw in a $2,500 rebate and you have a great value for anyone needing car loans with bad credit.

#3 – 2010 Hyundai Accent 4dr base
Base price - $10,690
September rebate - $500
Price before taxes - $10,190
The Accent carries the same industry-leading warranty as Kia. As such, bad credit car loan buyers will probably not need to buy an extended service contract.

#2 – 2010 Chevrolet Aveo 4dr LS
Base price - $12,685
September rebate - $2,500
Price before taxes - $10,185
Chevrolet's least expensive sedan is built by GM's Daewoo subsidiary in Korea and has the added advantage of being able to be serviced at any Chevrolet dealer.

#1 – 2009 Kia Rio 4dr base
Base price - $12,190
September rebate - $2,500
Price before taxes - $9,690
A $2,500 rebate, a selling price of under $10,000 plus one of the best warranties in the business makes the 2009 Kia Rio the winner for September, just as it has been since July.

The Bottom Line

New car incentives including rebates and customer cash are a great way to not only make a vehicle more affordable, but also contribute towards your down payment. In the case of the 2009 Kia Rio, you can buy a vehicle that would normally have a retail delivered price of over $13,000 (in most states) for around $10,500 in most states, after all taxes and fees.

Everyone needs a car. Before you buy a car from a local tote the note car dealer, consider applying for a bad credit auto loan from Auto Credit Express, a leading national car buying service for people with bad credit. Our credit application is encrypted so your personal information is secure, and you can fill it out in the comfort and security of your home.

So why not begin the process of rebuilding your credit by filling out our online car loan application now.