If you thought a new car was out of your price range, you might want to reconsider.
New research by GOBankingRates shows that you can finance a car for well under $300 per month.
The financial information website identified 52 cars that someone with excellent credit can drive home for $300 per month or less. Most of these vehicles also are likely to cost less than $300 per month for someone with good credit, and several cost the same even for someone with fair credit.
Kristen Bonner, lead researcher on the study, notes:
“Owning a car does not have to be detrimental to your finances. No matter your credit, you still have a wide range of models to choose from that will accommodate your wants and needs.”
In fact, with good credit, four of the vehicles identified by GOBankingRates can be financed for less than $250 per month. They are:
1. 2016 Nissan Versa Sedan
- Starting MSRP: $11,990
- Down payment: $2,398
- Monthly car payment: $213
2. 2016 Chevrolet Spark
- Starting MSRP: $12,660
- Down payment: $2,532
- Monthly car payment: $225
3. 2017 Mitsubishi Mirage
- Starting MSRP: $12,995
- Down payment: $2,599
- Monthly car payment: $231
4. 2017 Mitsubishi Mirage G4
- Starting MSRP: $13,995
- Down payment: $2,799
- Monthly car payment: $249
GOBankingRates identified these cars and the others on the list based on:
- Manufacturer MSRP
- 20 percent down payment
- Five-year auto loan term
- APR based on excellent, good or fair credit
Keep in mind that the above totals are for buyers with “good” credit. Totals can be even lower if you have “excellent” credit. For example, the Versa might only cost you $172 a month.
If you prefer to buy cars outright instead of financing them, the Nissan Versa might still be worth considering.
Earlier this year, Consumer Reports named the Versa among the 12 top-rated new cars that cost less than $25,000. Last month, YourMechanic also named it among the 10 cheapest cars to maintain over 10 years.
But if you are currently financing or are considering financing a vehicle — whether new or used — be sure to check out “Car Loans: Are You Paying Too Much?”
What’s your take on these findings? Would you consider one of the top four vehicles identified? Let us know below or on Facebook.