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Publish Date - November 04, 2022

Author: Dale Peterson

Categories:   Tips & Insights For Car Buying    Buying & Selling Cars   

Looking for an Affordable Used Car Loan?

It’s that time of year when consumers start thinking about buying a car, and you might even have your sights set on a great car. Unfortunately, you might be in a position where your wants don’t match reality because you can’t afford them. Here is a bit of an update on the auto market today.

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It’s that time of year when consumers start thinking about buying a car, and you might even have your sights set on a great car. Unfortunately, you might be in a position where your wants don’t match reality because you can’t afford them. Here is a bit of an update on the auto market today.

It looks like 2023 might be a good year for shopping for a new or used car, or at least a bit easier. The auto market is still a long way from getting back to normal supply and demand. If you shopped this year, you no doubt experienced the severe lack of inventory that has driven car prices to the moon. We think it should finally be easing, giving shoppers more choices and more options.

As a point of interest, the key will be to get more semiconductors since modern cars require so many computer chips. From what we’ve read, the chip situation is still tight but slowly improving. Assuming that continues, automakers will ramp up, and buyers won’t have to fight over scarce models.

Expect this trend to continue next year: Modest price dip, but no bargains. If you’re buying used and paying cash, you’ll have some bargaining power. Used-car prices are coming down after their sharp pandemic increase, resulting in so few new cars being built during a time of high demand. Many buyers had no choice but to buy used cars, which jacked up used-car prices in line with new cars. Recently, used-car prices have fallen 10%, though they remain a shocking 55% higher than their pre-COVID levels.

Let’s face it. If you’re shopping for used and new car financing, you’re in for high-interest rates compared to the last 7 years. There is a good alternative for financing if you go to myAutoloan.com, which provides you with up to four loan offers at no cost. You can choose which offer from many national lenders is best for you. The national average rate on a used car loan is 16%. Even borrowers with good credit are paying 9.2%, depending on whether they get special financing. And those are for loans with an average term of nearly six years.

So, what’s the difference between smart consumers and unwise consumers? It has to do with understanding the difference between fantasy and realistic perceptions. Here is an example: The consumer who does not see the big picture will spend more than he or she has on a new car just because it’s a beautiful car. And they may not consider car financing as a way to save on the overall cost of the transaction.

Then it hits them after they make that purchase, not thinking about what they can afford, and find themselves in a cash flow squeeze. It’s not knowing what you can afford and not doing any shopping for rates and terms. What follows are months and months of financial stress and, in some cases, bankruptcy and car repossession.

If this is something you want to avoid because your credit could be in better shape, you need to investigate new and used car financing before you start shopping for a car. Using tools that show you auto finance rates and auto finance loan payments will save you time and money in the long run.

If you choose used car financing, it’s a smarter decision to pay less now, save money, and then buy the car of your dreams when you are in a better financial situation. Even a good used car can be a little expensive, especially these days, and this means that you will need to make sure that you have chosen a payment plan that fits your lifestyle. The last thing you want to do is buy a car that is in bad shape only because it is less expensive. This kind of decision can only lead to greater payments down the road for a vehicle that you don’t particularly like.

If you are ready to start making that used car financing decision, you will want to first figure out what’s reasonable for your lifestyle – what you can afford. This means that you must know what your household monthly income is. You also must know what kinds of expenses you have. This means you must consider loans and debt, utility bills, and future expenses that are not yet an issue. This is the most realistic way to figure out what you can pay. This is also the best way to get approved for a loan you will truly benefit from.

When looking for used car financing options, you will want to take your business online. This may certainly sound counterintuitive to many consumers who are used to the major lenders and banks, but the truth of the matter is that you will find the best payment plans this way. It would help if you also remembered that the way to find the best financial deals is to keep all your options open. This means you will have to get used to thinking outside the box.

Demand for consumer loans is likely to increase in coming quarters. While demand for credit cards remains below normal demand levels, banks expect that demand will rise over the next six months. They hope that rising incomes and higher consumer spending, greased by affordable credit, will boost borrowing. It still is a great buying and refinancing opportunity in the auto finance market. Consumer auto loans will probably increase over 2021 because of increasing inventories and the fact that dealers want to sell cars. So do your homework and visit myAutoloan.com which has all the tools you need to save money on financing.