Purchasing a small, affordable car appeals to many individuals who are seeking a bad credit car loan. However, the recent spike in gas prices has prompted many Americans, regardless of their financial history, to downgrade the size of their vehicles.
Kelley Blue Book, an auto industry research company, found that 58 percent of American car owners have been forced to look for smaller vehicles in order to conserve money for fuel costs, according to The Wall Street Journal. Rising gas prices have also led to more people applying for used car loans, the survey reveals.
Approximately 90 percent of survey respondents said that they expect gas prices to increase over the next 30 days. The appeal of a used car may be enhanced because they are typically cheaper than a new model. Thus, even a consumer who is interested in a gas guzzler can save money if they buy it used.
However, some individuals are determined to purchase a new car, which usually comes with a multi-year warranty. According to The Virginian-Pilot, several new models are both affordable and fuel efficient. For instance, the 2011 Hyundai Elantra is rated at 40 highway miles per gallon (mpg), while the 2011 Chevrolet Cruze Eco registers at 42 highway mpg.