Which Cars Are Easiest To Finance With Bad Credit?

If you have bad credit, getting approved for a car loan can feel like a challenge. But don’t worry, not all cars are treated the same by lenders. Some vehicles are easier to finance because of the lower prices, strong, resale value, and fit the approved criteria. 

In this guide, we will cover :

• What lenders look for when approving bad credit loans 
• The best type of cars for easier financing
• A list of vehicles and banks that dealerships are more likely to approve
• Tips to increase your approval odds
• Which cars are easiest to finance with bad credit

So let’s dive in

What do measures look for when financing car with bad credit?

Lenders consider several factors before approving an auto loan, especially for borrowers that have bad credit. Here’s what they focus on.

Loan amount versus car value (loan to value ratio)

• Banks prefer vehicles that hold their value well.
• If the car drops too quickly and value, lender will reject the loan or require a higher down payment.

Vehicle age and mileage

• New cars less than seven years old are easier to finance.
• Many lenders avoid cars that are over 100,000 miles because of the reliability concerns.

Price and monthly payment

• Cars that are under $15,000 are easier to finance for bad credit car buyers.
• A purchase price equals lower loan risk for lender.

Vehicle type

• Lenders  prefer practicality, fuel, efficient cars over luxury cars.
• Sports cars, trucks, high-end brands may have stricter loan requirements.

Best type of cars for easy financing with bad credit

If you have bad credit, stick to the vehicles that are.

• Affordable cars under $15,000 or more likely to get approved.
• Reliability brands with strong we sell value are preferred.
• Fuel, efficiency economy, cars cost less to own and maintain.
• Newer with lower miles cars under seven years old and 100,000 miles or ideal.

Best cars for bad credit financing

Here’s a list of vehicle vehicles that banks and dealerships are more likely to approve for bad credit buyers.

Toyota Corolla

Why is it great for bad credit buyers?

• Reliable and long lasting
• Great fuel economy (30+ MPG)
• Holds its resale value well

Best model years: 2016-2022

Honda Civic

Why is it great for bad credit car buyers?

• Affordable maintenance and repair
• High resale value, better approval chances
• Strong fuel economy

Best model years: 2015-2023

Nissan Sentra

Why is it great for bad credit buyers?

• Budget friendly pricing
• Low maintenance cost
• Comfortable and feel efficient

Best model years: 2016-2021

Hyundai ELANTRA

Why is it great for bad credit buyers?

• Affordable new and used pricing
• Reliable with a long warranty
• Good fuel economy

Best model years: 2015-2022

Chevrolet Malibu

Why is it great for bad credit of buyers?

• Full-size sedan with spacious interior
• Decent resale value
• Easy to find a dealerships

Best model years: 2015 to 2020

Ford Focus

Why is great forbad credit buyers?

• Affordable pricing
• Widely available used
• Low insurance cost

Best model of years: 2014-2018

Kia Forte

Why is it great for bad credit buyers:

• Low starting price
• Reliable with a great warranty
• Good fuel Academy

Best model years: 2016-2021

Tips to improve your approval odd

Even if you consider one of the above vehicles, you still need a strong loan application. Here are some ways to improve your chances.

Save for a down payment 

A down payment of $500-$1000 for a car can lower your loan amount and increase your approval odds with many dealerships.

Get a cosigner

If it’s possible, ask a family member or a friend with good credit to cosign your loan. This will help lower your interest rate.

Shop around for the right lender

Not all lenders offer loans for bad credit. Consider.

• Credit unions because they are more flexible than banks.
• Subprime auto lenders specialize in bad credit loans
• Buy here pay here, easier approvals, but higher interest rate

Improve your credit before applying

If possible, spend a few months improving your credit score by.

• Paying off all debts
• Making on-time payments
• Keeping credit card balance is low

Final thoughts

If you have bad credit, financing a car is still possible, but choosing the right vehicle can be a huge difference.

Stick to affordable, reliable, and fuel, efficient cars that lenders prefer, and take steps to improve your loan application.

Ready to see what you qualify for? Find bad credit card loan options today!