Affordable new cars for drivers with car loans

Affordable new cars for drivers with car loansFollowing the recession and the recent disaster in Japan that slowed production of new cars, used car prices rose, and certain models were worth more used than they were new. Now, due to the subsequent shortage of used cars, American automakers are predicting a minimum of a 10 percent increase in the sale of new vehicles, Motor Trend reports.

Many car companies are offering consumers deals and incentives to encourage them to buy new. Drivers who are shopping with bad credit car loans have plenty of affordable options in the new vehicle market. Popular Mechanics picks out a few choices from the 2010 New York Auto Show that fall below the $20,000 mark.

The Ford Fiesta starts around $13,300 and can get 40 miles per gallon on the highway, so drivers will also be able to save money at the pump. The 2012 Scion iQ will have a starting price of roughly $16,000 when it hits American showrooms this fall. The mini car appears to be a culmination of a Fiat 500 and a Smartcar, and gets 37 mpg on the highway, according to the Auto Blog.

A new car can be a good option, as the rising cost of used cars will likely counteract the deprecation that usually hits hardest in the first few years of ownership.