Once the driving license is obtained, the next order of business is to decide whether to opt for a new car or a used car. Due to the fast changing consumer preferences, majority of the people sell off their old cars for newer models. This has resulted in not only boosting the emerging car market, but has also augmented the used car market. Accessibility to a used car has increased manifold as various banks and auto financing companies are approving used car loans. Moreover, there are numerous reasons associated to why many people are moving towards a used car.
So why is the sale of used cars gaining momentum?
Surely, buying a brand new car can seem to be a desired fantasy. The smell of a new car, plush cozy seats and the attractive paint are coveted. However, can your income really cover for the expenses of indulging in a new car? The sources to meet the heightened expenses would be through past savings or other income. A rational alternative would be to rather buy a used car that serves the purpose of acquiring a vehicle for your daily needs. Also, the amount you shell out for a used car will be comparatively lower than the amount spent on a new car, helping you to save money in the process.
The onset of the trend of selling current cars for newer ones has led to a huge surplus of used cars with an average age of 4 years. This indicates that the used cars still possess longevity of many years before they turn obsolete. Therefore, the sustainability of the used car does not pose as an obstacle and people are more willing to invest in used cars, especially when it is so cost efficient.
Obtaining an approval for a used car loan is fairly easier when compared to seeking loan approval for a newer car. While many banks do not highlight used car loans as their top-rated product, the process of acquiring it is less complex which makes it suitable for those who want to make an immediate purchase. The key advantage here is that even when a bank does not approve a loan request, there are quite a few auto financing companies who can either act as a bridge between the loan applicant and the bank; or completely finance the car from their end. In both the instances, attaining a loan gets easier if it’s for a used car.
Now, there are also a few things to keep in mind before you apply for a used car loan. The age set for qualifying for the loan is 18 years with minimum earnings of $1800 per month. This is one of the major reasons why many teenagers select a used car over purchasing a new car. Usually, an auto financing company looks for car buyers with a good credit score and zero bankruptcy history. These features help in instilling a sense of goodwill and provide reassurance for the payment of the loan from the car buyer.
All in all, a used car loan can conveniently help you to fix your priorities with a control on the budget at the same time. If a stress-free loan approval within the purview of a fixed budget is a criterion that you seek for your next car, you know right where to invest.