The main advantage to buying a used car is (obviously) the lower purchase price.
If you buy a used car on the payment plan, expect to pay more — often, a lot more — for the interest on the loan.
Many new cars can be financed with no money down and 1-2 percent (or even 0 percent) interest.
How long should you finance a car?
That means you’ll find available loans of 24 months, 36 months, 48 months, 60 months, 72 months and 84 months. The average new car loan is around 65 months, or more than five-and-a-half years, while the average used car loan is shorter.
What should I know before financing a car?
Before you start your car buying process, there are a few important things that you should know about car loans.
- Know The Right Credit Score.
- Apply For Loans During A 14-day Time Span.
- Get Pre-approved – Then Shop.
- Calculate Costs Before Saying Yes.
- Understand Dealership Financing.
Photo in the article by “Wikipedia”