Consumers with bad credit and realistic expectations can take advantage of September new car incentives on an affordable car to keep their monthly payments low and their interest expenses down on a bad credit car loan.

Credit repair and car loans with bad credit

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 used car with auto loans for bad credit. By doing this, many of our applicants have been able to raise their FICO 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 expensive than necessary if you choose the wrong vehicle. A car that's too expensive can also stretch the budgets of many credit-challenged consumers and even result in repossession. If this happens, the only remaining choice for most buyers is 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 even bad credit auto loan lenders will only consider applicants if a repossession is over a year old.

The right car

Most credit-challenged consumers rarely ask what kind of car they should get with a bad credit auto loan. They know what they want and, unfortunately, it's usually not a small to midsized car. But getting their dream car with a loan designed to reestablish auto credit is not the best idea. Here's why:

Ditching the dream car for now

While many individuals with bad credit want to buy a large crossover, a minivan, or even a full-sized pickup, buying a vehicle of this type really doesn't make any sense at this point in time. The high interest rates charged by bad credit lenders will put these payments at the very edge of most budgets, while the insurance costs will make owning them even more expensive.

The alternative is to finance a small to midsize car and, depending upon your budget, financing it for the shortest term possible in order to save on interest expenses. 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. 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.

Choosing new or used

In order to do this, most customers who finance with auto loans for bad credit choose an affordable used car. But there is another choice. Picking out an affordable new car also has its advantages.

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

With nearly four 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 5 discounts for September

Today, we've taken the time to combine the highest discounts as a percentage of MSRP with 5 of the 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. These vehicles are also ranked by the percentage of the discount, not by their MSRP's or selling price.

The average selling price is based on data from

#1 – 2010 Ford Focus 2dr SE – 20% discount
Base price - $17,895
Average price - $17,306
September rebate - $3,000
Price before taxes - $14,306

#2 – 2010 Chevrolet Aveo 4dr sedan LS – 19% discount
Base price - $12,685
Average price - $12,786
September rebate - $2,500
Price before taxes - $10,286
#3 2010 Mitsubishi Galant ES – 19% discount
Base price - $22,344
Average price - $21,708
September rebate - $3,500
Price before taxes - $18,208

#4 – 2010 Hyundai Sonata 4dr sedan I4 Man GLS – 18%
Base price - $19,420
Average price - $18,396
September rebate - $2,500
Price before taxes – $15,896

#5 – 2010 Kia Optima 4dr sedan I4 Man LX – 16%
Base price - $18,690
Average price - $18,118
September rebate - $2,500
Price before taxes – $15,618

The Bottom Line

Rebates and customer cash new car incentives are a great way to not only make a vehicle more affordable, but also contribute towards your down payment. In the case of the 2010 Ford Focus, you can buy a vehicle that would normally have a retail delivered price of over $19,000 (in most states) for around $15,300 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 bad credit car loan application now.