The Best Type of Vehicle to Rebuild Credit

Jan 1, 2022

Some people make the mistake of choosing the older, more affordable cars to rebuild their credit.

It’s not wrong, in fact – it makes sense!

You’ll pay less interest on $10,000 than you would on $20,000

But here’s where things can go sour:
That cheaper vehicle is less reliable.

There is a stronger likelihood that within a year, you’ll be spending upwards of $2,000 on repairs and maintenance.

Let’s pretend for a moment, you have a $2,400 repair.

If you spread that out over a year, that’s $120/mo.

Now that ‘cheaper’ vehicle is getting expensive!!

That’s $120 you could’ve had in car payments for a vehicle that would’ve needed any repairs.

But here’s where some magic happens: Let’s say you get something that’s an extra $5,000 purchase price.

It is more reliable, so you won’t have the $2,400 hit of repairs, but here’s the neat thing:

If you also pick a newer vehicle, which lenders are more comfortable lending money for, they typically have lower interest rates!

Now, it’s win-win-win!

Win #1. You’re making a savings because you don’t have a massive repair.

Win #2. You’re getting a nicer or newer vehicle for the same ‘high cost’ as the cheaper one.

Win #3. The newer or nicer vehicle will have a lower interest rate.

Now, not only are you rebuilding your credit with a nicer vehicle, you’re doing it at less cost.

If you’re making more than $1800/mo – chances are you’re ready to start.

There’s no obligation on your part. If it doesn’t make sense for you financially yet, we’ll help you get on the right track with some simple strategies that will get you in position within 6 months, so that when you get that vehicle, you’ve got a strong financial foundation that saves thousands of dollars!