Auto Credit Express reported that people who have bad credit often look to buy used cars rather than new ones, because they imagine that they will have lower monthly payments.
However, the organization says that other factors, such as lender rates, maintenance costs and the down payment, can make financing a used car more expensive than a new car.
New cars typically have longer warranties than used cars, which can reduce maintenance costs if something goes wrong. To get a warranty on a used car that compares to that of a new car, buyers are likely to have to pay extra.
Lenders who give out bad credit car loans often offer better rates for new cars, and give owners a longer period of time to pay off the debt, which can lead to a lower monthly payment.
In addition, many new cars come with a rebate, which is a partial down payment. Buyers who have bad credit can benefit from this system because they are often required to put cash down up front.
Auto Credit Express lists the 2011 models of the Chevrolet Aveo, Kia Rio, Hyundai Accent and Chevrolet Aveo5 as good options for people who have bad credit.