Used Car Loans - an Overview

By: Joanne Clive

Life without a car is simply unimaginable. Many go for a brand new car. However, for some, a brand new car straight out of a showroom is not important. Some people look at buying a new car as value loss, because the moment one drives his brand new car out of a showroom, value depreciation happens to his coveted investment. These days, most of the used cars are those that have been seized from defaulters. Defaulters are people who do not repay their car loan in time. So, one may actually get a really good deal or virtually a brand new car.

Earlier, car loans for used cars were not easy to come by. Nowadays, loans to purchase used car - used car loans, - are easily available with many loan companies. However, the credit market is like an ocean... Without proper knowledge, one may spend more money than he should when buying a used car. Hence, it is important to have at least a general overview of how one can save money when buying a used car.

1. One should go for a used car that is one or two years old, as it will not only save money but will also ensure that it has most of the same features as the new one of the same model

2. One should avoid trading-in his old vehicle, as selling it privately will get him more money than if he trades it in.

3. One must negotiate financing terms, final price and the trade-in value separately to ensure that one gets the most for his money

come with affordable terms and conditions. As the car itself is given as security, the interest rates are down with flexible repayment options. However, one must shop around to avail the best possible deal. Getting a number of quotes from a number of dealers enables one to negotiate for the most favorable one. A through knowledge of the car loan market will impels the dealer to offer a fair deal. Above all, never buy in a hurry...

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