A Financial Primer on Buying a Used Car
A Financial Primer on Buying a Used Car
Posted on December 8, 2021
Buying a used car is one of the bigger decisions a consumer makes in his or her lifetime, so getting it right is important. In reality, the financials of buying one of our used cars isn’t really all that complicated; nonetheless, there are several key things to keep in mind. Following these steps will help the buyer master the financial aspects of car buying.
Paying Cash
If the car buyer has enough cash on hand, it is always nice to pay for it all at once. Not having monthly car payments can free up money for other things and leave a cushion for maintenance costs. The buyer should make sure he or she has enough money left over to pay for gas, routine repairs, license fees and car insurance. Also, sometimes the buyer can negotiate a better purchase price by paying in cash.
Getting a Loan
When taking out a used car loan, there are a few rules of thumb to keep in mind. It is a good idea to put 10 percent down on the car and to try to pay off the entire loan in three to four years. The total cost of the car should not exceed 20 percent of the buyer’s monthly take home pay. These are just general guidelines and the loan should be structured to meet the budget of the buyer.
We offer a full service finance department that can guide customer’s through the steps of getting a car loan. In most cases, this can be taken care of in an hour or two. It is a great convenience for the buyer to handle everything all in one place.
Saving Money
Used cars are a great deal for the buyer. They can save the customer a large sum of money by reducing purchase price, taxes and insurance costs while providing a vehicle that will provide dependable transportation for years.