Buying a used car can be a great value. You
can save thousands by letting someone else take the initial
depreciation hit. A new car loses a chunk of it's value the minute you
drive it off the lot.
But, buying a used car requires a little
more time and effort than a new car. First you need to make sure you
are getting a quality car at a competitive price. Then you need to get
a great used car loan.
Most banks and car
dealerships are offering great rates on auto loans right now. But you
may save even more with an online used car loan from
Automotive.com
Many banks and auto dealers
will charge you finance
rates are significantly higher on used cars.
But, with a little careful shopping you can
get a used car loan for practically the same rate as a new car loan.
Before we get into used car financing
there are some things about your used car purchase you should
consider.
Not all used cars are the same. Lets look
at some of the different types of used cars.
Certified Pre-Owned.
These are the best and nicest used cars. Auto manufacturers have
stringent standards on which car can be sold as a certified pre-owned
vehicle. They have to go through a vehicle history check, as well as a
thorough reconditioning and inspection process. Certified pre-owned
cars usually have additional warranties backed by the manufacturer
Program Cars. These are typically
rental car returns. Program cars are normally 1 year old or current
year model vehicles with 10,000 to 30,000 miles.
Chevrolet, Ford and Chrysler are heavily
into the program car business, as well as imports like Nissan and
Mitsubishi. However, you won't find a Honda or Toyota program car.
Neither Honda or Toyota is in the rental car business.
Program cars are often an excellent buy
because they can often be bought for about half what the original
sticker price was. They are also usually good quality cars due to the
rental fleet's meticulous maintenance. Although you will pay a little
more for popular imports used in the rental fleets like the Nissan
Maxima and Altima.
Lease Returns. Financial
institutions are heavily into the auto leasing business these days.
This provides a steady stream of 1 to 3 year old cars coming back onto
the market. The leasing institutions then sell the expired lease
vehicles to auto dealerships.
Off lease vehicles are normally closer to 3
years old. But since leasing institutions limit the amount of miles
the cars can be driven, and charge the original lessee for excess wear
and tear, these vehicles usually turn out to be well cared for.
Repossessions. When someone fails to
pay their loan or lease, the result is a repossessed vehicle that the
bank must dispose of. These are usually not the nicest cars. After
all, if a person is not going to make the car payment, they are
certainly not going to spend anything for maintenance or care of the
car. Steer clear of repossessions.
Trade Ins. These are often the
nicest cars. Especially if it was traded in by the original owner. 1
owner cars are typically better cared for.
Private Party Sales. Buying a car
from a private party can be a good way to purchase, especially if you
are buying from someone you know personally. However a private party
sale requires a little extra scrutiny, because many of the cars you
see advertised in the classifieds are being offered by unlicensed auto
dealers who buy sub-standard cars, fix them up cosmetically, and sell
them to unsuspecting buyers.
If you are buying from a private party be
sure you know who you are dealing with, and make sure you get a clean
title. Unlike buying from a dealership, if you buy from a private
party and something goes wrong after the sale, you may have limited
recourse. Many times the seller can never be located again after the
sale.
So how do you know the
history of the car you are considering?
Before buying a used car be sure to run a
CARFAX vehicle history report. CARFAX.
CARFAX maintains a national database of
public records on auto accidents, title registrations, auto theft
reports, and vehicle histories.
The CARFAX report will show the history of
the car. Whether it has ever been in an accident, if it is a salvage
or stolen vehicle, how many owners it has had.
Click here now to get a free CARFAX Vehicle
Lemon Report on the car you are considering.
So what is the best way to finance a used
car?
Whatever you do, never finance your used
car at the dealership. Always get a used car loan from an independent
third-party such as your bank or credit union. Or consider getting an
online auto loan to finance your used car.
Why should you never use dealership
provided financing when buying a used car? Because dealers often make
used car loans at thousands of dollars over the vehicles loan value.
If you let the car dealership dictate both the terms of the sale, and
the terms of the financing you could wind up paying thousands too
much.
By getting an online auto loan you can lock
in a competitive, low interest car loan. And, you can be sure that the
loan reflects the true value of the car you are buying.
How does an online used car work? It's
simple, really.
