Used car loans are very useful if you can't quite afford a brand new car, and are seeking finance for something more within your budget. Many used cars are excellent buys, particularly those less than a year old where depreciation on the new price has occurred, and you can regain yourself a next to new car for significantly less than the new price.
Finance available in the form of used car loans can be either unsecured or secured, although you won't ordinarily get a secured loan unless your car has been purchased from a dealer and is less than 5 years old. However, you can still get decent rates on unsecured loans, and if you use a car loan calculator to work out what your repayments will be, you will be able to settle what price you can pay for your car, based upon how much you can afford in monthly repayments.
Used Car Loans Interest Rates
When seeking a used car you should make sure that it is in good condition, particularly the bodywork. Engines and parts can be replaced but not the bodywork, and if that is rusted or holed, than it is going to be high-priced to maintain. Sooner or later you will have a lot of costly welding work to pay for. Make sure you take the potential cost of maintenance and repairs into account when calculating your affordable payments.
Another aspect of owning a used car to take into account when considering a used car loan is that of insurance. Unless your car is less than two or three years old it might not be worth going comprehensive, and the lower your insurance costs, the more you will be able to afford for your car loan. What you should do then, is to check out the used car that has caught your eye, find out how much it will cost to insure at the level you want, and make sure that it is not in immediate need of repair.
Then outline out your maximum monthly expenditure, deduct insurance and estimated repair costs and enter that into a car loan calculator long with the price of the car and the current rate of interest. That will tell you over how many months you will have to pay the loan.
What you do then is to find a lender that will lend you that amount of money over the duration that you need to borrow it. If the stated interest rate is higher, then the duration will be longer, and if the rate is lower, such as for a secured loan, then the duration of repayment will be less.
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