Used Car Auto Loans

Buying a used car has a number of advantages over buying a new car. In fact, by choosing to buy a used car, you have already made a smart decision.

To start with, if you choose to buy a used car you avoid the steep depreciation that new car buyers suffer during the first one-two years after their purchase. This will also help you avoid getting upside down on your auto loan, especially if you have chosen a longer term or you don't have enough cash for a big down payment.

Buying a used car also provides you with the benefit of getting more luxury and/or performance for a smaller amount of money. Your used car will cost you 20 to 30% less than its new counterpart even if it is only a year old. At the same time, nowadays you can find used cars that are almost as good as brand new ones.

Of course, many car buyers worry about the reliability and the expense of repairs of used cars. However, you can always search for a certified used car with warranties or a used car that is still under the factory warranty. Additionally, you can trace the history of used cars via the VIN number. Thus, your worries can be eliminated at least to a certain extent.

Financing the Used Car Purchase

In recent years the rates for financing a used car purchase have dropped and made buying a used car even more attractive.

Just as with new car financing, there is more than one way to finance your used car purchase. You can borrow from:

• A dealer - depending on your credit score and the particular offer it could turn out to be a good deal for you.
• An independent source (such as banks, credit unions, online lenders) - often financing through an independent source is recommended since it offers a number of advantages, some of which are:
  • Allows you to have more control over the transaction.
  • Gives you the opportunity to comparison shop for the best interest rate ahead of time.
  • Simplifies the negotiations since there are fewer factors to negotiate.

Prearranging your used car auto loan before you go to the dealership can further enhance your smart financial decision to buy a used car since it will make you stick to your budgeted amount.

True, you will not be driving the newest automobile, but you will know that you are not suffering (and paying for) the significant depreciation of a new car and you are not likely to get upside down on your auto loan.

The auto loan calculators and the information available on this site are intended to serve only as general guidance regarding auto loans. Since they do not take into account your individual circumstances, we cannot and do no guarantee their accuracy or suitability to a specific purpose. We highly recommend you to consider the appropriateness of any information to your objectives before acting on it, and encourage you to consult a qualified professional regarding you particular personal situation.

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