High Mileage Auto Loan
Thanks to modern technology, the lifespan of vehicles are increasing. If you need a vehicle but can’t afford a newer vehicle, you might have to settle for a vehicle that already has high mileage on it. However, the higher the mileage the more likely you will need more repairs and have the vehicle for a lesser period of time before repairs cost more than the value of the vehicle. High mileage cars are considered clunkers, but that is not always the case.
Considerations for Buying a High Mileage Vehicle
- What do you need the vehicle for?
- How much will an inspection cost?
- How much of a down payment can you afford?
- What monthly amount can you afford?
- How many miles a year do you plan to put on?
- How many years do you need it for?
You might find buying a high mileage vehicle is easier because they typically are harder to resell. If it is an older vehicle it might not have safety features that are up-to-date.
A common concern with a high mileage vehicle is the functionality. It is illegal for anyone to knowingly sell you a “lemon,” which is a term to describe a new or leased vehicle that cannot be repaired after a reasonable number of attempts. Usually, it only covers used cars when it is still under the manufacturer’s warranty. Review more at https://consumer.findlaw.com/lemon-law/lemon-law-basics.html.
Maintenance for a High Mileage Vehicle
The most notable aspect is that a high mileage vehicle has been well maintained over the years and will continue to be maintained in your ownership. The owner’s manual will detail the required maintenance and service intervals, but the intervals might stop short. That does not mean that the vehicle’s lifespan will end, sometimes manufacturers don’t expect a vehicle to still be running after a certain amount of mileage.
High mileage cars need TLC, so do not drive aggressively. Hard stops and short trips can add damage to the vehicle. Also, make sure to warm up the car before driving it during very cold weather conditions.
In storage or not, the rubber and plastic might need to be replaced. After 120,000 miles it is not common to need major repairs. After 10 years, mileage becomes less significant. Read more about why a high mileage vehicle might suit you https://medium.com/instamekmechanics/why-buying-high-mileage-cars-is-a-great-idea-8dd1c5eaf999.
How Much Will a Loan Cost?
Car loan interest rates vary on an individual basis. A car loan payment calculator can help you find out how much of your monthly payment will go to the principal and how much will go to the interest. The principle is the amount of money that you originally borrowed and interest is a fee. Our auto loan payment calculator is a necessary tool if you wish to get the most suitable car loan based on your budget and includes:
- Loan amount (comprises the cost of the vehicle, car registration, tax, etc)
- Loan term (the duration of the loan term)
- The auto loan rate (expressed as an APR)
Down payment will affect the overall amount you’ll be paying monthly towards the car. The down payment is the amount of cash or trade equity you’re willing to put up a front when financing a vehicle.
When applying for an auto loan, the amount applied for should include the cost of the car plus other additional costs that come with buying and registering a car such as sales tax and vehicle registration fee. You can check an estimate of a vehicle’s value at www.KelleyBlueBook.com. It’s strongly suggested to have 30% of the car value for your down payment.
Not All Lenders
When applying for a car loan or car loan refinance, lenders often have a cap for how many miles a vehicle may have. Car Loans of America does offer auto loans for high mileage vehicles. We believe that high mileage vehicles have sufficient benefits. Get a quote by using our online form or calling us at 866-601-2749.