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Coupled with auto financing, small cars may be a smart buy

Posted on Tuesday, February 18, 2014 at 9:47:21 AM

Smaller automobiles are extremely popular across the U.S. These options offer many positive qualities for buyers, but recent tests performed by the Insurance Institute for Highway Safety have found that they may be lacking in one category - front crash safety. Only one out of 11 tested minicars passed - the Chevrolet Spark, while the Honda Fit and Fiat 500 had the worst performance.

Even so, these types of vehicles can be smart purchases for buyers interested in affordable auto financing. They can provide a number of perks, and might be exactly what is needed for a person who doesn't want a massive gas-guzzler. To clarify any questions you may have about the process, Home Loan Investment Bank's Christine Dikdan shared some insights about the littlest cars.

"Smaller vehicles typically are smaller in price tag, provide better gas mileage and also can have lower insurance rates," she explained. "They are also easier to maneuver, such as getting in and out of tight city streets and parallel parking. This of course depends on the actual vehicle purchased, but if you are talking apples to apples and you purchase a smaller counterpart, then the above should apply."

Moreover, there are plenty of reasons why you may be interested in acquiring auto financing for these types of cars. According to Dikdan, this comes down to personal preference. However, she added that safety is of utmost importance, and should never be compromised when shopping for a new car. In order to get the process started, it may be beneficial to create a list of pros and cons.

"Sometimes a vehicle compromise may have to occur for financial reasons that cannot be avoided," she concluded. "I also know a lot of people, including myself, who have a perception of being more confident and in control driving a smaller vehicle."

With that in mind, consider these pieces of advice the next time you are in the market for auto financing and a small car.