IS A USED CAR RIGHT FOR YOU?
Posted on: May. 12, 2017 in Car Loans, Cars

Buying a car is an investment, not just in the item itself, but in your future. A reliable car is essential in many parts of the country for commuting to work, to access goods and services, and to transport family to all their activities. It’s also fun to just take a drive for the afternoon or take a road trip.

When looking for a car, there are many things to consider. Cost, condition, safety, maintenance, efficiency, and insurance all come to mind. One must also decide if they’ll purchase new, buy a pre-owned or used car, or if they’ll lease a vehicle. Each choice comes with a different set of financial considerations.

For many, a new car or a lease is out of the question because their credit score is too low to obtain the financing they need. Buying a used car may be within reach, but is it a good idea?

Here are the top three reasons to consider a used car:

  • Depreciation. New cars can lose as much as 30% of their value the moment they are driven off the lot. A used car has already depreciated, so you’ll pay less for it. The newer it is, the more you’ll pay for it, but it won’t compare to the sticker price of a brand-new car.
  • Warranties are often available. If the car is only a year or two old, the original warranty may be transferrable from the original owner and you’ll still have valid coverage for certain issues. If it’s not still available, you may be able to purchase an extended service contract. Review the terms carefully to be sure this will still save you money in the long run.
  • Insurance. It typically costs significantly less to insure a used car. This is due in large part to the fact that the value of the car is lower than a new car. Should something happen to it and the vehicle is damaged, the insurer will likely pay out far less on the claim, making insuring the car a smaller risk. This isn’t always the case, so talk to your insurance agent before you buy to get an idea of cost.

Buying a used car with an auto loan can also help repair your credit. As you make your monthly payments on time, your credit history will reflect your financial responsibility and your overall score will increase over time.

If you’re ready for a new car but your credit is keeping you from getting approved, CreditYes can help with our bad credit auto loan program! We can match you with a dealership in your area that will be with you ever step of the way. Our service is fast and free. Fill out our secure online application and get behind the wheel of your next car today!



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