(February 23, 2012) SANTA MONICA, Calif. — Car buyers with very poor credit are known by lending institutions as "subprime," and are often charged very high interest rates when they take out loans. Instead of taking out such loans, subprime car buyers are better off using the money they've set aside for a down payment to buy a solid inexpensive used car outright, advises Edmunds.com.

The advice is especially targeted to "deep subprime" buyers with credit scores below 550 and who are likely to turn to "Buy Here, Pay Here" lots that offer uncomfortably high interest rates. An estimated 57 percent of deep subprime buyers make their vehicle purchases from these dealerships which are generally easily identifiable because they only sell used cars and often advertise the tag line "No credit? No problem!"

"Consumers with poor credit think that 'Buy Here, Pay Here' may be their only option, but this move often signs them up for a seemingly endless cycle of high interest payments," says Edmunds.com Consumer Advice Associate Ronald Montoya.

"By purchasing a car outright, deep subprime shoppers won't be beholden to the dealership or creditors. And since inexpensive used cars are much more dependable now than they were 20 years ago, they can be a long-term transportation solution instead of just a short-term fix."

Shoppers can find many of these low-end used vehicles at reputable dealerships across the country. Edmunds.com advises shoppers to review the tips found in its guide to buying a used car for under $2,500.

"In this price range, you are not going to get a recent model with all the frills," says Montoya. "What you will find are a number of high-mileage cars with a few dents and dings. But as long as the car runs well and has been properly maintained, you will likely be better off than if you bought a nicer car that requires expensive financing. "

An older used vehicle will also require more attention to maintenance, but without monthly payments to worry about, there will be more money on hand for fix-ups. Click here for Edmunds.com's advice on how to keep cars running for the least amount of money.

More information on avoiding "Buy Here, Pay Here" lots and purchasing an inexpensive vehicle can be found by clicking here.