If you’re debating between new or used car loans for bad credit, there are a few things you should know before you buy. A good deal doesn’t begin and end with the seller. If you want the best value for your vehicle purchase, you need to understand car depreciation and other factors that determine whether or not a new or used car is your best bet.
New Cars Lose Value Immediately
As soon as you drive that brand new car off the lot, it immediately loses thousands of dollars in value. The decrease continues as more time goes by. In the end, you may wind up paying a lot more for a car that won’t come close in value when it’s time to resell. For example, the Nissan Leaf was expected to lose over 50% of its MSRP within one year of purchase. Depreciation is a big part of why many Australians choose to buy used cars.
Know the Vehicle’s History Before you Buy
If you want to get the best value out of a used car purchase, you must know the vehicle’s history. Ask the current owner about any problems or major repairs that were done in the past. If you like what you see, arrange for an inspection. This can be done at the seller’s location. If you are not confident in your automotive knowledge, contact your state’s motoring organisation to find an independent expert to perform the inspection for you.
Down Payments & Trade-Ins
Do you have a down payment or trade-in that you can use to help offset the cost of a new car? This can help improve your chances of getting financed. For those that don’t, used car loans for bad credit are often a much better choice. You are more likely to be approved, even if you do not have a trade in or money to pay up front.
Have Confidence in Your Car
Every year we see new car models produced and advertised. While the promotional material often makes these vehicles look very attractive, we don’t know how they are going to perform until they are on the road. Value and reliability are very important, especially for those who don’t have the means to buy a second car. It’s also another reason to consider used cars over the year’s newest models.
Know the Lenders that Offer Used Car Loans for Bad Credit
Some lenders target new car purchasers and won’t even consider lending to anyone looking for a used vehicle. It’s even harder to find a lender if your credit rating is low. The good news is that there are places you can go to find a used car loan for bad credit.
Zoom Car Loans will help you find the best rates from lenders who will work with you. Nine of out ten clients who meet regulatory conditions are approved. Get started now by applying online or by calling 1300 138 273.