New Car Loans Vs. Used Car Loans
When you’re thinking about financing a vehicle, the first thing you have to decide is if a new or a used vehicle is right for you. Paying attention to price tags at any dealership will reveal, pretty quickly, that there are some drastic pricing differences between new and used cars in terms of monthly payments, interest rates, and insurance costs.
Depending on your budget and lifestyle, both new and used vehicles have their pricing pros and cons.
New cars are obviously more expensive than their used counterparts, so the interest rates are generally lowered to balance this out, or you’re more likely to get a rebate or another value-added offer. This can be great at the beginning, however insurance rates and taxes tend to be much higher as you’re the first owner. Are you paying more, even after those great initial offers? It definitely pays to do those calculations.
Additionally, new cars lose about 15% of their market value pretty much immediately. This quick depreciation could be a big loss if you have to/want to trade in your vehicle at some point.
Unlike new cars, used cars have a lower sticker price, as well as reduced insurance rates and minimal registration fees, which could save you over 30% of what you would spend on a new car. Although your interest rate will go up slightly, financing a used car will ultimately save you more money in the long haul. The question is, are you getting the most bang for your buck with a used car and, ultimately, are you going to a reputable dealership?
Select iCar is proud to carry Thunder Bay’s largest inventory of used vehicles, each one put through a rigorous 100-point inspection to ensure our entire inventory is up to the highest standards of dependability.
Get started with our free and quick online application to see what your financing options are.