ALL >> Automobiles >> View Article
The Numbers Say Go For A Used Car
Total Articles: 64
Are you thinking of buying a car? Is your decision tilting towards buying a new car? Before you head out to make a purchase, do give a thought to the other option. Buying a pre-owned car may not make for an appealing choice; but makes sense financially.
Stay away from the New; Go for the Used Cars
Who doesn’t love the new car smell? You may have set your eyes on a new car but here’s why you should head to the used car section at the dealership.
Buying a New Car becomes Expensive every Year
Even though there are several affordable car models, buying a new car and keeping it is becoming expensive year over year. Obtaining an auto loan for buying a new car is resulting in higher monthly payments than before. According to Experian’s Q1 2017 data, a sub-prime borrower spends $519 on a new car loan. And, if he seeks a used car loan, it comes down to $385. So, it makes sense to buy a used car.
Loan Terms are getting Longer
Lenders charge high interest rates from sub-prime borrowers. But, they try to cover the high rates with longer loan terms. If you wish to buy a new car with super-prime credit, the lenders will offer a loan term of 62 months. And the term is 72 months for deep subprime car borrowers. For a used car borrower with deep-subprime, the term is 65 months. Remember that used cars are less costly which means you will make smaller monthly payments over the years. But, when you buy a new car with a long term, you end up paying more in the form of interest.
The Risk of Negative Equity
Constant rise in monthly payments and long loan terms spell a recipe for disaster. A new car loses value as soon as you leave the dealership lot. And, the lenders direct initial payments towards the interest amount. It means the amount you owe to the lender becomes higher than the value of your car. Being in an upside down loan situation is very risky proposition. If the car is totaled for some reason, you will have to pay the difference between the insurance money and the pending loan amount. So, consider choosing a used car because of its low value and low depreciation rate.
Let your Brain take the Lead!
Buying a car is an emotional experience. You may adore a brand. You may have set your heart on a certain car model. But, remember that a car is the second biggest purchase of your life. If you listen to your heart and disregard cognitive thinking, you will face bad credit score and unpaid debts in the future. So, consider your financial condition, credit score, and cash availability before buying a new car. If you think that higher monthly payments will put an unnecessary burden on your financial condition, go for a used car. Listen to your brain and make a practical decision.
Buy a pre-owned car and make your purchase affordable with America’s bad credit auto loan expert. CarDestination.com will help you obtain low rate used car loan and ensure an easy car buying process. Apply now.
Automobiles Articles1. Advice For Car Buyers: Choose The Right Lender
Author: Wiliams Orchard
2. Buy Certified Pre Owned Luxury Cars In Best Quality From Miami Dealers
3. Three Warning Signs Indicating That You Need A Windshield Replacement In Kent, Wa Done
Author: Justin Ward
4. Ourbus Is Your Bus – The 21st-century Way To Work Commute
5. Clifford Beaumont: Japanese Economic Growth Rises For 7th Consecutive Quarter
6. Burton Mills: China Economy Continues To Slow
7. Rockman – The Automotive Component, Alloy Wheels & Drive Chain Manufacturers In India
Author: Rockman Industries
8. Choose Yakima Roof Rack For Your Vehicle For Enjoying Off Road Journey
Author: Tony Bulic
9. How Do You Hire A Reliable Food Truck Builder?
Author: Randy Travis
10. Getting The Best Boat Deals In Florida
Author: Riva Motorsports
11. Vectra - The Leading Earthmovers Equipment & Best Skid Steer Loader Manufacturers In India - Europe
12. Find Best Roof Mounted Bike Carrier For Your Car In Sydney
Author: Charles Manfredi
13. What Is Causing The Problem?
Author: Batteries & More
14. Why A Car Is A Necessity In The City Of Detroit?
Author: jeffery reynold
15. The Windscreens Replacement Process - What You Need To Know
Author: Anna Lampasona