How To Buy A Cheap Car In 2024 With The Right Financing

In 2024, buying a car doesn’t necessarily require a hefty upfront payment. With a variety of financing options available, purchasing a vehicle, whether new or used, can be done on a budget. If you’re strapped for cash but want a car of your own, we’ve done some research to help you pick the right car for you within your budget.

Understanding Your Financing Options: How To Cut Car Costs

1. Traditional Auto Loans

Suitable For: Buyers with good to excellent credit who seek ownership of the vehicle.

  • Pros: Potential for low-interest rates; various loan terms available; increases credit score if payments are made consistently.
  • Cons: Requires a credit check; potentially higher monthly payments than leasing; interest accrues over time.
  • Choosing Tips: Shop around for the best interest rate and terms. Consider shorter loan terms to reduce total interest paid.

2. Leasing

Suitable For: Individuals who prefer a new car every few years, or who want lower monthly payments without the commitment to own.

  • Pros: Lower monthly payments; under warranty; no resale hassle.
  • Cons: Mileage limits; charges for excess wear; no equity in the vehicle as it’s never owned.
  • Choosing Tips: Ensure the lease terms (mileage, duration, wear) align with your driving needs. Consider lease-to-buy options if you might want to purchase later.

3. Buy Here, Pay Here Dealerships

Suitable For: Buyers with poor credit, no credit, or those who have been turned down for traditional financing.

  • Pros: Easier credit approval; quick buying process.
  • Cons: High-interest rates; limited selection of older or high-mileage cars; potential for predatory lending practices.
  • Choosing Tips: Verify the dealership’s reputation and compare the terms with traditional loans if possible. Be wary of very high-interest rates and hidden fees.

4. Personal Loans

Suitable For: Buyers who want a simple loan process and potentially no down payment.

  • Pros: Not restricted to vehicle type; fixed interest rates; flexible terms.
  • Cons: Higher interest rates compared to secured auto loans; requires good credit for favorable terms.
  • Choosing Tips: Compare different lenders, including banks and online lenders. A personal loan is best when you have excellent credit and seek flexibility.

5. Credit Cards

Suitable For: Very low-cost cars, or when buyers can take advantage of an introductory 0% APR offer.

  • Pros: Immediate purchase; potential rewards; promotional no-interest periods.
  • Cons: High standard interest rates after any promotional period; impacts credit utilization ratio.
  • Choosing Tips: Ideal for short-term financing if you can pay off the balance before high APR kicks in. Ensure your credit limit is sufficient without harming your credit score.

Cars With Low Monthly Payments

  1. 2023 Subaru Solterra: This vehicle can be leased for $241 per month for 36 months, with an initial payment of $241 due at signing. This deal combines a very low initial cost with affordable monthly payments, making it an excellent choice for those looking to lease a new car with minimal upfront expenses​​.
  2. 2024 Hyundai Kona Electric: Another great option for those seeking new technology along with low payments is the Hyundai Kona Electric. It is available for lease at $199 per month for 24 months, with $1,029 due at signing.
  3. Hyundai Financing Deals: Hyundai offers several financing options across their range in 2024, such as the Hyundai Venue at 4.9% APR for 60 months and the Hyundai Kona at 4.29% APR for the same period. These deals provide manageable monthly payments over an extended period.
  4. Honda Financing Deals: Honda provides competitive financing rates for their 2024 models, such as the HR-V at 3.9% APR for 48 months and the Civic at the same rate for the same term. These offers are aimed at buyers looking to finance new cars with low interest rates, resulting in lower monthly payments.
  5. Infiniti Financing Deals: For those interested in luxury cars with manageable payments, Infiniti offers financing on models like the QX50 and QX55 at rates of 3.9% and 2.9% APR for 60 and 36 months, respectively. These finance terms allow for lower monthly payments on premium vehicles​.

Cheap Cars Under $1,000

  1. 1998 Honda Civic LX: Priced at $1,000, this vehicle has seen considerable use with over 229,862 miles logged. It features a manual transmission and a 4-cylinder engine. This car has been well-maintained with a detailed service history, making it a reliable option for a budget car.
  2. 2010 Toyota Camry: Available for $900, this sedan comes with an automatic transmission and has traveled 164,002 miles. It has a history of multiple uses and holds a branded title, which typically means it has been rebuilt after significant damage. Despite this, it could be a good option if you’re looking for a low-cost vehicle for short-term use​.
  3. 2008 Ford Fusion S: This model is listed at $1,000 and offers a more recent option with 233,206 miles. It features a 4-cylinder engine and has a clean history with no accidents or damage reported. It’s a viable choice for those needing an affordable and dependable car for everyday commuting​.