Car Choices for Bad Credit Car Loans

By Angela Monroe - June 25, 2020

Car-Choices-for-Bad-Credit-Car-Loans

Choosing a car is tough. Running costs, comfort, personal preference and of course, price. There’s a lot to think about. Choices can be limited and overwhelming – especially for buyers with bad credit.

People spend days, even weeks, pouring over makes and models. Here are some of the top choices:

Holden Captiva

image of family on road surface

2016 Models Around $15,000 (depending on your haggling skills)

Why it’s a car for bad credit: Selection

With Holden shutting up shop, prices have dropped. Holden’s SUV, the Captiva is a solid family transporter with a huge selection of used examples. The lower price and later models to choose from allow for smaller loan amounts. Lenders are happy too as the later model vehicles are under warranty and therefore have a lower risk of breakdown. Holden announced that they will continue to honour all existing warranties.

Toyota HiLux

toyota hilux

New From Around $24,490

Why it’s a car for bad credit: High resale value

This applies to several Toyota models, and other brands too. The ever-popular HiLux dual cab is a versatile workhorse and family troopcarrier. It comes from the super reliable brand, Toyota. Getting finance on a new ute is pretty easy as lenders love solid reliability, high resale value due to appeal to many buyers with well-established warranties. The HiLux offers it all.

Toyota Yaris

Yaris steering wheel

New From Around $15,000

Why it’s a car for bad credit: Cheap to run, cheap to insure, cheap to buy.

For those with higher interest rates and large portions of their income going towards loan repayments the Yaris may be the answer. Being from the ultra-reputable Toyota, lenders are happy too. Making owners (and lenders) happier still is the 5-year unlimited mileage warranty. Further putting smiles on all faces, the Yaris is easy to park, cheap to run – one of the most fuel efficient cars out there – and registration / insurance costs are low too. 

Kia Rio

kia steering wheel

New From Around $17,490

Why it’s a car for bad credit: 7-year warranty (and low running costs)

The Kia Rio is a big seller for the Korean car maker. It’s no wonder why. As with all new Kias, the Rio comes with a super-long 7-year warranty. Kia was the first automaker in Australia to back their products with a 7-year warranty, most come with roadside assistance too. In 2019, the Rio was found to be the cheapest car in Australia to own, factoring in running costs, services, price, registration, etc.

Suzuki Swift

suzuki swift

New From Around $16,690

Why it’s a car for bad credit: Low running costs

A slightly more expensive competitor to the Yaris, the Swift has been one of the cheapest cars to own for a while now. ‘Cheap to own’ meaning not only at the petrol pump, but also registration, insurance and servicing. The Swift has a modern interior with Apple Carplay / Android Auto and 7-inch touchscreen. If you’re working casual hours, parking in tight spaces and driving in heavy stop-go traffic for example, the Swift won’t disappoint.

Toyota Camry

toyota camry

New From Around $28,000

Why it’s a car for bad credit: Durability, great for families

Yet another Toyota on the list, the Camry has generations of refinement and build quality. Known for its low fuel costs, durability, high(ish) resale value and passenger-carrying ability, the Camry is a good choice for owners struggling with lenders or repayments. Most mechanics report that they’ll last well over 250-300,000km with regular servicing and when treated with respect. 

End of the Day

woman smiling in car

Choosing a car when you have bad credit does limit choices, but the cars available suit all lifestyles. Lenders mainly look at credit history, previous loan defaults and capacity to repay the loan. Fortunately, there are a number of alternative lenders to the big banks that specialise in car loans for people with bad credit.

Angela Monroe
Angela Monroe is the Community Manager at The Positive Group, specialising in giving people the information that they need when they need it, and putting you on the path to a fair financial future. She has 8 years of experience in helping Australians find the right finance solutions, and regularly contributes articles to empower Australians with the knowledge they need to become financially healthy.

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