Used Auto Finance
Why Should You go for a used auto finance loan? Used autos have become less expensive while new cars have dramatically increased in price.
When people talk about finance, the term auto loan often crosses our minds along with many other types of loans. Getting a used auto loan can be a real money and time saver if your finances need a little work to improve your credit score.
It boils down to whether you have sufficient funds in your account for a down payment and the ability to make monthly payments. Often a challenge for many in today’s high-interest environment.
I’m sure you understand the complexities brought about by taking out a loan from your local bank with the risk of high interest rates while repaying. For this reason, myAutoloan.com has partnered with several national banks, national lending specialists, as well as national lending institutions with specialty finance for both excellent and poor credit situations. In short, they offer super prime loans and subprime loans.
The myAutoloan.com platform offers Sub-prime loans at competitive rates and payment plans. Their lending platform allows them to access multiple lenders when the application is submitted. That allows you to get up to four loan offers, all competing for your used auto loan at a competitive rate.
Being able to see multiple loan offers allows you the ability to have a choice in the selection of the best loan for you. Having a choice is a wonderful condition to have! Again, you choose what works best for you, and you move forward dealing directly with the lender that you choose.
And the average used car shopper is different now than in the past. It’s not just smart to be shopping and looking for used cars that have already taken the biggest hit from depreciation. And there are plenty out there.
Nor is it only shoppers with lower credit scores.
One credit bureau says that 77 percent of near-prime customers were financing used cars. These are buyers with credit scores ranging from 601 to 660. But buyers across all credit tiers are picking used cars over new ones.
While U.S. car buyers have historically opted for used cars, used auto loan trends show that preowned sales are outpacing new sales by a large margin. In years past, total U.S. car loans were split at around 60/40, with the bigger number going to used cars.
Experian recently issued a report that states that the split between used and new auto loans is split now 62/38 as auto buyers try to avoid today’s higher prices for new cars.
That doesn’t mean used car buyers are immune to higher auto prices, overall. Since used cars are becoming more expensive, used car loans reached record prices up to $27,000, almost $4,000 more than last year. Monthly payments for used car loans are now up to $499, while loan terms have increased to record lengths of 68 months.
Down payments are significant when thinking about used car finance. It refers to the money or equity one has to pay upfront before financing a vehicle. Although used car finance is considered a cheaper option compared to purchasing a new car, a lack of sufficient information on the down payment could increase the amount paid every month.
Customers who venture into used auto financing are not left out of being fully informed about their loan process. myAutoloan.com provides several tools to help get you up to speed on financing, improving your credit, and with payment and rate calculators.
These are smart ways to finance a vehicle, whether it is new or used auto financing. There are usually a few common factors to consider before making a used auto finance credit resolution. Among such factors include the vehicle's mileage and price, and, most importantly, the down payment. So, check out these tools and resources:
Good luck and happy financing!