Posts tagged ‘brand new car’

Useful steps in researching for used vs. new car loan rates

Conducting an extensive research on car loan rates allows you to obtain the proper financing for the car you wish to purchase. However, it is useful for you to decide on what particular type of car that you would be purchasing. You can consider the price as well as the loan rates involved in financing the two these two types of vehicle. Comparing these factors would help you decide which of the two fits on your budget. To further help you in making your decision, this article enumerates the useful tips in researching for the used and new car loan rates.

Examine your budget

The first thing that you should do before deciding on what type of vehicle that you would be purchasing is to examine your budget. Try to examine your monthly take home pay as well as the expenses for each month. Deduct the expenses from the monthly income and take note of the remaining amount. You can use this in determining which type of car would suit your budget. You also need to consider the savings you have for the down payment of the vehicle that you have decided to purchase.

Research for the prices of a used and brand new car

As soon as you are able to determine the remaining amount of your income for each after deducting the monthly expenses, you can go on researching for the prices of used and brand new cars offered for sale. You can check the websites of several car manufacturers for the prices of brand new cars. You can also check the websites of the dealerships that are selling used cars. Take note of the prices of each car that you are interested in. Make a short list of the prices for each.

Check the loan rates for each type

After obtaining an idea about the prices of used and brand new cars, you can search for the loan rates offered by several lenders. To simplify the search, you can use in checking the rates loan rates for each type of car. is connected to a lot of lenders that are willing to provide the loans you need.

You can obtain the car loan rates for the used and brand new car you are interested in purchasing by using Take note of the rates and try to compare the payments involved in case you decide to finance a brand new or a used car. Check your budget and select the type of car that you can afford based on the budget.

Tips to compare used and new car loan rates

Comparing the car loan rates involved in financing a brand new and a used car is an effective method that helps you decide which of the two types of car would fit your budget. Upon doing the comparison, it is important to look at the following:

Pros and cons of financing used cars

Financing a used car allows you to pay the loan off in a shorter period compared to a brand new one since most lenders usually offer short term loans for this type of vehicle. However, the interest rates involved in financing a used car is higher compared to financing a new one. This is because lenders are in greater risks in providing loans to finance a car since there is a greater possibility for the creditor to default on loan payments or run away from their financial obligations. High interest rates placed on used car loans therefore provide security to lenders.

Pros and cons of financing a brand new car

Financing a brand new car usually has lower interest rate compared to financing a used vehicle. However, you might be paying for the car in a longer period especially when the loan has a longer term. In addition to this, a long term loan might cause you to pay more than what is necessary because of the payments on the interest rate.

Besides these, there are other important points that you could use in doing the comparison. Some of these points are written below.

  • Choose a car that you want to buy. Compare the prices of this vehicle when it is sold as brand new, used or pre-owned car. Take note of the primary amounts involved for this serves as the basis of the interest rate that you would be paying in case you would purchase one of these.
  • Contact the dealerships, lenders, and institutions and inquire about the interest rate that they offer for a brand new and used car loan.
  • Use an online car loan aggregator to help you compare the rates involved in financing a used and brand new car.