Smart Cheap New Cars with Bad Credit

We take the list of the ten cheapest cars to own according to Edmunds.com and fine tune it for car buyers with less than perfect credit

What we can tell you

If you have credit issues but you’ve qualified for a new car it’s especially important to play it smart if you’re given a choice of vehicles.

At Auto Credit Express we know what’s at stake at this point because for over twenty years we’ve been helping car shoppers with low FICO scores find dealers that can give them an opportunity for their best chance at approved auto loans.
Cost versus price

We also know that more has to be considered than just the selling price when determining a car’s total cost. That’s because, over a lifetime of ownership, a number of other things need to be taken into consideration: fuel efficiency, reliability, maintenance costs and, in particular, a vehicle’s depreciation.



Edmunds.com used their True Cost to Own calculator to come up with a list of the ten cheapest cars to own, as of July 2012, and included all ownership costs including depreciation, financing interest charges, auto insurance premiums, fuel cost and typical maintenance and repair projections.



Edmunds also based their list on national cost averages which means that, depending on where you live, the cost listed could be more or less in any particular geographical area. It was also assumed that the cars would be driven 15,000 miles per year for five years.

Fine tuning

While we in no way are attempting to challenge the accuracy of this list, we had to apply a new set of rules for consumers with credit problems.



To begin with, the number one and number two cars on the list, the Scion iQ and the Smart ForTwo, are two small for most families, so they had to go. Next, we had to drop the number five car, the Mitsubishi i-MiEV ES because, at $29,125, it is too expensive to be financed with a high-risk car loan. Finally, we eliminated both the Prius c and the Honda Insight because they both crossed our self-imposed $17,000 retail threshold.

The winners

It’s no surprise that the remaining vehicles fall into the two most affordable new car categories – important for people with credit issues – subcompact and compact cars.

Ten cheapest new cars to own and operate for people with poor credit scores

5. Kia Rio LX five-door
Price: $13,660
Gas mileage: 30 mpg city/40 mpg highway
Five-year cost to maintain: $31,714
Cost per mile: 42 cents

The LX features a 138-horsepower, 1.6-liter, four-cylinder engine. As priced here, it uses a six-speed manual transmission to get power to the front wheels. It comes with air conditioning, trip computer, 60/40 split-folding back seat and a four-speaker audio system with satellite radio capability, CD player and iPod interface.

4. Honda Civic DX Coupe
Price: $16,555
Gas mileage: 28 mpg city/39 mpg highway
Five-year cost to maintain: $31,013
Cost per mile: 41 cents

The Civic’s 140-horsepower, 1.8-liter four-cylinder engine turns the front wheels through a five-speed automatic transmission as it is priced here. It comes with power windows and a tilt-and-telescoping steering wheel.

3. Ford Fiesta S Sedan
Price: $13,200
Gas mileage: 29 mpg city/38 mpg highway
Five-year cost to maintain: $30,994
Cost per mile: 41 cents

The base Fiesta comes with a five-speed manual transmission and a 120-horsepower, 1.6-liter, four-cylinder engine driving front wheels. It also features air conditioning, a tilt-and-telescoping steering wheel, power outboard mirrors, and a four-speaker audio system with iPod interface.

2. Mazda2 Sport
Price: $14,530
Gas mileage: 29 mpg city/35 mpg highway
Five-year cost to maintain: $31,714
Cost per mile: 40 cents

The Mazda2 comes with a 100-horsepower, 1.5-liter, four-cylinder engine. The price also includes a standard five-speed manual transmission. The Sport model comes with full power accessories (windows, locks, mirrors) as well as, air conditioning, and a four-speaker audio system with CD player and auxiliary input jack.

1. Nissan Versa 1.6 S Sedan
Price: $10,990
Gas mileage: 27 mpg city/36 mpg highway
Five-year cost to maintain: $29,735
Cost per mile: 40 cents

The Nissan Versa sedan comes with a 109-horsepower 1.6-liter four-cylinder engine that sends its output to the front wheels through a five-speed manual transmission. Standard amenities include air conditioning, a trip computer and a two-speaker audio system with CD player and auxiliary input jack.

The Bottom Line

Car buyers should never confuse price with cost. The price is what you pay the dealer, while the cost is what you’ll wind up paying over the lifetime of the vehicle ownership.

One more thing we’d like you to keep in mind: Auto Credit Express specializes in placing applicants that have experienced car credit problems with franchised new car dealers that can offer them their best chance for approved auto loans.

So if you’re ready to establish your auto credit, you can begin now by filling out our online auto loans application.