Brentwood, NY, November 26, 2010–There are a few differences between a new car loan and a used car loan.
- A new car will be always purchased from an authorized dealer. Hence, the buyer may obtain financing from the dealer as well. The paperwork becomes simpler, and one need not deal with the strain of coordinating all the parties. However, the price of a loan from the dealer is usually higher as compared to a commercial finance. It is difficult to obtain used car loan as generally used car dealers are small businesses. Moreover, obtaining a loan from them can be risky as they might go out of business, and ask the buyer to make a lump sum payment of the balance amount.
- Used car loans from a finance institution can be expensive because of the lender’s risk involved in investing in a used car. The lender’s concern can be that the value of the car may go lower than the value of the loan before the loan is entirely paid back. In such a case, if the borrower defaults, the lender may have difficulty recovering the full amount of the loan. For this reason, the lender charges a high interest rate and you can’t get low interest rates car finance.
- Buying a used car can be considerably less expensive than a new one, because the overall cost will be much lesser. Hence, one need not make a huge down payment, and still avail lower monthly installments.
- The buyer should also check the history of the used car. Negotiations about the finance plan in case of returning a substandard car should be done beforehand.
- One of the biggest risks about purchasing a used car loan is slipping into an upside down car loan. Within a few years time, the value of the car may drop drastically, and then the borrower will be paying off a loan, which is more than the worth of the car.
Nowadays, guaranteed car finance companies offer various kinds of loans. These loans come relatively cheaper, and with flexible terms and conditions. An approved auto loan is a loan which an individual borrows before buying the car. This gives the buyer ready cash in hand. Hence, the car dealers will offer them a better deal. Also, as the buyer has the loan approved in advance, he/she knows how much is affordable, and this keeps expenses in check. Today, with such a range of auto loans, almost nothing can keep you away from your dream car.
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Car Money Fast
2937 Wayback Lane
Brentwood, NY 11717
United States
631-349-8581
carmoneyfast@gmail.com
Website: http://www.carmoneyfast.com
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