5 Cars To Avoid If You Have Bad Credit
If you have a low credit score but need a car to get around, the good news is there are still a lot of options. However, there are some makes and models that are definitely to be avoided if your credit report comes out less than favorable.
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Joe Giranda, the director of sales and marketing at CFR Classic, explained that for folks with bad credit, “…the financing terms for luxury cars can be less favorable for those with bad credit. Higher interest rates combined with the premium price of the car can result in unmanageably high monthly payments.”
Furthermore, Giranda noted that insurance premiums for high-end vehicles are “considerably higher than those for more modest cars, further straining one’s budget.” Plus, if you decide to go down the road of financing a vehicle — either at the dealership or via other routes — chances are you will only end up hurting your credit more when you can’t make the payments on your car.
So if you are not walking around with an 800+ score, but still want to get into a set of wheels, take a look at cars to avoid if you have bad credit, as well as some options for getting a car that fits your needs and budget.
Mercedes-Benz S-Class
Cassie Fields, president at Autoleap, called The Mercedes-Benz S-Class “a flagship luxury sedan” and said that it is “known for its luxurious features and advanced technology.”
However, according to Fields, “It can be expensive to maintain and repair, especially as it ages. People with bad credit may find it difficult to afford the high costs associated with owning an S-Class.”
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Audi A8
The Audi A8 is a luxury sedan known for its advanced technology and luxurious features, but “owning an Audi A8 can be costly, not just in terms of the initial purchase price, but also in terms of maintenance and repair costs,” according to Carl Rodrigeuz, founder and owner of NX Auto Transport.
“The sophisticated technology and high-end materials used in the A8 can result in expensive repairs, making it a less-than-ideal choice for individuals with bad credit who may struggle to afford these additional costs,” Rodriguez added.
BMW 7 Series
“The allure of this prestigious sedan is undeniable,” admitted Giranda, “but it poses significant financial challenges for individuals with bad credit.”
Giranda went on to explain that “[h]igh-end cars like the BMW 7 Series are not only expensive to purchase but also to maintain and insure.”
“The 7 Series is packed with advanced technology and features, which can result in costly repairs if something goes wrong,” said Rodriguez. “For individuals with bad credit, these additional costs can make owning a BMW 7 Series a financial burden.
“The repair costs associated with luxury brands are notably higher than those for more conventional vehicles due to the specialized parts and services they require,” Giranda added.
Land Rover Range Rover
Rodriguez explained that owning a Range Rover can be expensive, both in terms of fuel costs and maintenance. He mentioned how the Land Rover Range Rover is “a luxury SUV known for its off-road capabilities and upscale interior” that might be a bait and switch for car buyers with poor credit.
“The Range Rover’s reputation for reliability issues and expensive repairs make it a risky choice for individuals with bad credit, who may struggle to afford these additional costs,” he cautioned.
Acura RLX
Sure, the RLX from Acura rides smoothly and comes with all the bells and whistles you’d want in a car when it comes to the latest tech features. But the thrill of owning one wears off quickly when the costs to keep it on the road keep adding up.
Fields went on to say that the RLX “…can be expensive to maintain and repair, especially as it ages. People with bad credit may find it difficult to afford the high costs associated with owning an RLX.”
Bad Credit, Good Options
“It’s always better to opt for a more reliable, budget-friendly vehicle that ensures lower monthly costs and overall better financial stability, especially when your credit history is less than perfect,” advised Giranda.
The best place to start looking is with a used car, which can be found both online and in person at dealerships.
“You’re going to get suboptimal rates for whatever financing you can get, so the more you spend on the purchase, the longer it’s going to take to pay the car off and the more you’re going to end up paying in the long term,” explained Ben Michael, director of auto at Michael & Associates.
Michael advised bad credit car buyers to “[f]ind a mid-level vehicle that has a great Kelley Blue Book rating for a used vehicle and get it paid off as quickly as you can to help fix your credit. “
“Models like the Toyota Corolla or the Honda Civic are excellent choices because they are affordable, have good fuel efficiency, and maintain their value well over time,” Giranda suggested.
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This article originally appeared on GOBankingRates.com: 5 Cars To Avoid If You Have Bad Credit
