How to Lower the Cost of Car Ownership
by Steve Cypher on Friday, June 1st, 2012
Car buyers with damaged credit need to look at the total cost of a new car if they want to successfully complete the auto credit repair process.
We understand the need for this here at Auto Credit Express after more than twenty years of helping car buyers with less than perfect credit. The resource section of our website also contains information on subjects such as repossession and bankruptcy as well as today’s issue, choosing an affordable car once you’ve received a loan approval from one of our affiliate dealers specializing in bad credit auto sales.
That’s because once you receive a loan approval you should check out which of the vehicles you qualify for will be more affordable to own and operate.
Kelley Blue Book
A report from Kelley Blue Book’s kbb.com not that long ago compared the vehicles with the best Total Cost of Ownership among cross-shopped models for both the Chevrolet Cruze and the Honda CR-V, two of the then-most researched vehicles on the website.
The CR-V, along with those vehicles cross-shopped with it, is probably too pricey to be financed using a subprime lender. But the Chevrolet Cruze, along with its cross-shopped vehicles, could very well fit the budgets of many car buyers that have low FICO scores.
“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.”
Ranking ownership costs
The following list includes the rankings of the top five vehicles with the lowest five-year ownership costs, according to kbb.com, that are crossed-shopped with the Chevrolet Cruze:
Build Your Credit With a Little-Known Loan
If you’re thinking about capitalizing on the housing market or you’re trying to secure financial aid for a college student, you’re going to need good credit to get decent interest rates.
We stumbled upon a little-known loan offered by some credit unions. The main purpose of it is to help you build or repair your credit.
“I just knew that I wasn’t credit-worthy,” said Malika Alim of Oakland.
She had a number of missed or late credit card payments on her credit report, so a couple of years ago, when Alim wanted to get a car, she knew getting a loan would be next to impossible.
“Credit is similar to a driver’s license. You need to have it and you don’t really appreciate it until you don’t have it,” said Alim.
She found the “Fresh Start” loan at her credit union, Community Trust. It’s a credit-builder loan, which are often found at credit unions.
They work kind of like layaway; instead of getting the money up front, the credit union keeps the loan amount, say for example, $1,000, frozen in a savings account.