back to articles | December 31, 2018 | Dale Peterson

Categories: Auto Loans & Financing Types of Car Loans

Used Auto Loans

Used Auto Loans vs. New Auto Loans

Did you know getting a loan for a used automobile is just as easy as getting a loan for a new one? Many people think good auto loan financing is reserved for new car buyers, but it's not! People buying a used automobile have many of the same loan options available to people buying a new auto.

The loan process is essentially the same whether you're looking for a new or used automobile; so research both to see what's right for you.

The one potential difference between new and used auto loans depends on your credit. If you have excellent credit, a new auto loan may have a slightly lower loan interest rate than a used auto loan.

Why Get a Used Auto Loan?

Many people don't realize the advantages of buying a used automobile. Ever notice the large price difference between a new automobile and one 2 years older? That's because of depreciation.

The best reason to buy used is the majority of a new auto's depreciation occurs during the first two years. By buying used you get more value for your money; someone else already absorbed the automobile's depreciation.

As long as you choose an automobile in good repair that keep it's value well, a used auto loan could save you lots of money!

Used Auto Loan Interest Rates

There is no need to be overwhelmed when looking for a great used auto loan. The Internet provides all kind of tools to aid you in making your decision. Your first step is to decide what kind of automobile you want to buy.

You probably have an idea of your dream car and just want to see if you can afford the loan payments. To start, make a budget of your monthly expenses before pursuing an auto loan. Knowing what you can afford each month is key; be realistic but optimistic! One of the great things about buying a used auto is you usually get more car for your money!

Used Auto Loan Calculators

Once you know what kind of auto you want to drive it's time to think about loan rates. Research the price of the auto you like, new and used. Once you have an idea of what the automobile will cost, you can start determining what you'll pay in interest on your loan.

Auto loan calculators make math easy; enter the auto's expected price, your desired loan length and your expected loan interest rate. The auto loan calculator will provide a good estimation of your expected monthly auto loan payment.

The Internet and Used Auto Loans

Once you've determined what you can pay, the kind of used car you want and your potential monthly loan payments, use the internet to apply for your auto loan. It's easy and safe! Apply for several loans to find the best deal. Remember: you don't have to take any of the loan offers you receive.

Getting competing loan offers will help you figure out what you can expect to pay for your used auto loan wherever you apply. Additionally, having several competing auto loan offers is a great bargaining tool to get the rate you want for the auto you like