Hoovey689

iTrader: (16)

Top ten cars bought by people who probably can't afford a car

Sub-prime borrowers are buying completely different cars than everyone else, at least according to data gathered by Carfinance.com. This financing company that specializes in helping "below-prime" borrowers finance their car purchases looked at data gathered from between October 2012 and March 2013. According to their numbers, the top 10 new cars bought by sub-prime borrowers during that time are as follows.

• Dodge Avenger
• Kia Forte
• Kia Optima
• Chrysler 200
• Dodge Journey
• Ford Focus
• Ram 1500
• Nissan Sentra
• Nissan Versa
• Kia Sorento

Small and midsize sedans dominate the sub-prime borrowers shopping list, though not the same four-doors as the general public is buying in droves. Whereas the Toyota Camry, Honda Accord and Nissan Altima are the three top-selling midsize sedans in the US overall, sub-prime borrowers only have eyes for the midsize Dodge Avenger. In fact, the only vehicle that makes an appearance both here and on the list of top 10 selling vehicles overall is the Ram 1500.

Speaking of which, the Ram pickup also tops the list of top 10 used vehicles purchased by sub-prime borrowers (below), which also includes fullsize pickups from Ford and Chevy, as well as the lone example of what might be considered a less-than-practical purchase on either list, the Ford Mustang. The list of top used vehicles also shows that buyers are getting more car for their money, moving up to mid- and fullsize cars with nary a compact in sight.

• Ram 1500
• Nissan Altima
• Ford F-150
• Dodge Charger
• Chevy Silverado
• Chevy Impala
• Chevy Malibu
• Toyota Camry
• Chrysler 300
• Ford Mustang

What's the takeaway? Considering this data comes only from a six-month period, and from a single company's set of customers as well, we shouldn't give it too much weight. Still, the lists do suggest what we already expected, that sub-prime borrowers aren't usually buying what they want, but rather what they need.

http://www.autoblog.com/2013/05/04/t...-afford-a-car/

LexFather

So Kia, nissan, Chrysler... This is no surprise

Ironically I'm sitting in front of a giant bowl of popcorn

Fizzboy7

I could say something here, but I'm going to behave. =D

geko29

News flash...poor people buy cheap cars!

Seriously? The only part of it that surprised me even a little is the Ram. If you can't afford to buy a new car in the traditional debt model, it's not shocking that, given the ability to "stretch" a bit, you could wind up in an economy car.

If this list was filled with Buick, Lexus, BMW, Acura (Hi Mike!), I might be upset. But it's hard to hate on somebody who works all available options to get some basic transportation.

Blackraven

I'm kinda surprised with the Sorento.

If you want an SUV for practicality, I reckon that a Ford Escape would probably be a better deal compared to a Kia Sorento.

Or if you really want to save, just take public transportation (though of course, that depends on which part of America you're in. If you're in say New York/New Jersey, then it's possible. If you're in Texas, then public transport is severely lacking)

htekken

Not surprised by what Makes are on that first list. Only car id even consider on there is the Optima.

stlgrym3

iTrader: (4)

even my 7 year old nephew knows the correlation between those cars

FrankReynoldsCPA

Lot's of people around here who have no business buying a new car anyway. I've known people who can't even afford rent in their homes, so they move in with mom and dad and then go buy a brand new car. WTF?

Fly4u

I'd suggest a corollary story is HOW these cars are purchased.

How much down-payment, source of loan, ie. credit union vs bank vs commercial finance company, length of loan, ie. 36/48/60 months, etc.

MX5

I think what the list shows is not what cars people with crap credit WANT to buy, but rather what they are ABLE to buy. My guess is Kia, Ford and Dodge dealers have better access to subprime lenders than Cadillac and Infiniti dealers.

Still it's interesting to see what "poor people" choose to spend their money on. I have occasion to drive past a trailer park fairly often, and the other day I noticed someone had a brand new Dodge Avenger (see list LOL). My first thought was "Why would you buy that instead of a new Accord or Camry for the same money?"
Or a nice used Lexus. But who knows - maybe "buying American" overrides "buying quality" in their circles.

Mitsubishi is another brand that seems to attract poor-credit types.

Maybe some of it is just the 10 year warranties. Gotta assume if buying the car is a stretch, the thought of repair bills is pretty scary so a fat warranty becomes a major purchase motivator.

PS - I had a Sorento for awhile, and it was a great vehicle.

My0gr81

A sub-prime borrower is not necessarily poor. Self employed individuals, contractors and other professionals have been forced into the alternate lending market due to tighter qualification requirements to get financing. This explains the working trucks on the used side.

trexlexus

Some of the cars on the list i expected, but there are some that i were expecting that i didnt see in the NEW bought section. Primarily the Chrysler 300 and Dodge Charger. I see a bunch of those things in lower income neighborhoods.

The need to show off is within every sub group of people.

Used luxury brands are very common as well.

CincyBrad

I am surprised the 300 & Charger weren't on there to, they have become the official ghetto sled of choice.

TangoRed

You're not going to find a Camry or accord selling for as cheap as an avenger. There's so much cash on the hood on Avengers that its been cutting into Dodge Dart sales. And what makes you think they can afford Lexus maintenance?

mrraider

Surprised BMW 3 series didn't make the list. I'd be interested in seeing the financial status of base 3 series lessees.