Used car loans, great finance options for all budgets

Used car loans, great finance options for all budgets

The average new car is around $ 24,000 when including finance costs. This price is actually dropping as car manufacturers do their best to make their prices more attractive by lowering manufacturing costs and slashing the finance interest rates on their cars. However, lower costs for new cars when the price is still well in the mid twenty thousand is not that significant for the average Joe that cannot even think of spending that kind of money on a new car if he is going to be financially responsible.
The average price of a used car is around the $ 13,000, just over half the price for a new car. These figures beg the question, is it worth buying a new car? This is an interesting question that is best answered thinking about the pros and cons.
Buying a new car pretty much guarantees you will have no car problems for 3 to 5 years. Some car manufacturers like Toyota will actually guarantee your car for 5 years, an amazing guarantee for such a complex product as a car. On the flip side new cars devaluate faster, loosing up to 10% of their value just by driving them out of the dealer’s showroom.

Used cars are more likely to have mechanical problems and are therefore much less reliable. However their value tends to hold better and they are not such a substantial investment, much more amenable to the average budget.

Another advantage we will focus on is the excellent finance options of used cars. Banks are trying their best to soar over the current credit crisis and are opening up to new credit markets with gusto. The second hand car or used car market is massive. On average there has been 17 million new cars sold in the United States as opposed the 44 million used cars. Banks are opening to this massive market offering better deals to increasingly savvy buyers.

The fact is that the economic crisis we are living in has opened consumers’ eyes to savings even when they might not be going through especially challenging circumstances. It seems to be a sympathetic reaction which causes people to check their unnecessary spending and find ways to curb expenses and maximize on value.

If you buy second hand or used cars you can buy more car for less money. Estimates show that cars lose from 20 to 30 percent of their value in the first year which means you can get up to 30 per cent more car for the same dollar and still have a few years of manufacturer guarantee to play with.
If you have the right credit rating and a reliable source of income you can get the car deal of your dreams without having to pay top dollar for the privilege.