Making a comparison between a new auto loan and a used auto loan for a novice of car buyer. The buyer should have thought over it before deciding on either picking a new auto loan or settling for a used auto loan and this is done by knowing the similarities and the difference between the two auto loans.
Though the lender knows the difference and also state it in their agreement for the buyer to understand and agree to the terms given so that the buyer will know the financial contract he will settle for the next few years and what works for you according to your economic status.
Understand the type of auto loan below to select the one that suit you best and learn how Car Loans of America customers enjoy more control in the car buying process.
Advantages of New Car Loans
Reduced Interest Rates
This is one of the main benefits of new car loan which is to reduce the interest rate, and APRs are lower for new cars than a used car, although financing periods are usually more extended and not shorter.
The manufacturer often offers a reward. This would be like zero or low APRs on specific models. It can be a big gain to the buyer. This can also attract a buyer to go for a new car loan because of the benefit. The rate here is not typically negotiable, and it is based on customer’s choice or preference and also on the credit history or records.
The car manufacturer provides or gives bonus cash, and a special rate is not customarily offered together.
Advantages of used car loans
This is like the opposite of the benefits of a new car loan with little difference.’
Reduction in depreciation
We have a decrease in the amortization of the price of a used car. Not like the new car that depreciates after five years of purchase.
Shorter loan terms
Used cars may be associated with higher APRs than new ones, but they typically have shorter loan periods, which mean a quicker path to being car-payment free.
Accessible to a broader range of credit types
The lender often welcomes applications for used auto loans from consumers with various credit types. Not like a new car loan that is based on the previous credit record of the buyer. At Car Loans of America, we have many years of experience helping customers across the credit spectrum get on the road in high-quality vehicles.
We work with friendly auto dealers across the globe. Customer’s satisfactory which is our aim, getting the best or high standard and adequate loan that are refundable without stress. We are also into mileage and financing so that customer can get their car loan with confidence. Take a few minutes to complete our secure one-page application and see if you’re approved.
Apply for a new or used car loan on our website and get an instant reply.