Which Is Better A New Car Or A Used Car

By Victor Epand

What one is better for your situation? You may not know because cars are so expensive and those that are higher priced may be too much for you.

New Cars

There are many different cars that you can pick from. Most new cars will have some great advantages in regards to finding your auto parts. You may also notice that the new cars are easier on gas than the other used cars that you may find. Another good thing about a new car is that you will get all the newest auto parts and accessories for it and can find them very easily. New cars also give you the look of having some money and knowing how to use it. You will find that you are looked at differently than if you go with a car that is used and may have dents in it or make a loud noise when you are driving it. On the other hand, you will have to pay a lot of money for a new car and financing is not always available to everyone.

Used Cars

When you are looking into used cars, you may not know what you should be looking for. These cars can be hard to find auto parts for if you get a car that is really very old. Sometimes you can get a good used car that looks and runs like it was a new one. These are really very rare and you may have to deal with problems that you didn't see before you got it. Used cars are also not the best on gas sometimes. This is because they are not using the newest technology as well as not having the better engines. You can get a used car for a nice chunk of money instead of going into a whole bunch of debt and you can get these cars if you are someone that doesn't care about what you look like when you are in the car.

Whatever you decide to do, you should get the right car and the auto parts that go with it, for you. This may not be an obvious thing to see, but you can do it if you try. Many people will just jump in the car and not think about any of the issues that may go with it. Don't make that choice and get the one that is good for you.

Victor Epand is an expert consultant about motorcycle gear, used motorcycle parts, and used car parts. When shopping for motorcycle gear or used parts, we recommend only the best stores for motorcycle gear, used motorcycle parts, and used auto parts.

What to Look For In a Used Car Loan

By Michael Russell

Many young people could not afford their first car if it weren't for the availability of used car financing. They just don't have the cash to buy the car outright. Fortunately, obtaining such financing at very reasonable interest rates is not difficult. You just need to do your research and follow these simple steps.

As you're paging through the used car ads you're bound to come across what looks like absolutely fantastic car loan availability from the car dealers themselves. You'll see zero percent offers, low payment offers that seem too good to be true. Of course, they are! These ads are meant to mislead you, make you come in and apply, and end up getting a loan at 10 to 18 percent over the standard rates! Yes, interest-free offers are available, but only if you have perfect credit. Most used car buyers do not fall into this category. In general, used car loan interest rates exceed those of new cars by several percentage points on average.

One way to mitigate this cost is to get your loan through a dedicated finance company rather than through the car dealership or your normal bank. These institutions generally have more liberal lending policies. Any lender, however, will require proof of the value of the car, and a 20 percent down payment. This is normal and should not be regarded as a suspicious request. Both these regulations are designed to give the lender a safety margin, should the loan go into default. If that happens, the lender's only recourse is in the collateral, which is the car. Therefore, they naturally have a vested interest in knowing that you did not pay too much for the car, and that at least 20 percent of its value holds even if the default happens immediately. This is actually an advantage to you, as well. There is someone looking over your shoulder at the transaction, making sure it is a respectable deal and price for the vehicle in its current state and condition.

Before you apply for your financing, run a credit check on yourself. This will help you determine what you should be able to afford and should be offered. Sometimes you may realize before you really get started that a used car loan isn't affordable for you. This could be because of a low credit score, inability to meet the down payment requirements, or insurance concerns. Knowing this going in is important, because online institutions will tempt you with one-day offers. Don't fall for it! Despite their dire warnings of offer expiration, these lenders will be there tomorrow with another fantastic offer for you! Wait until you are comfortable with the amount and the terms. It is not worth the devastation a loan default can play on your credit history to take it now when you're unsure you can repay it as required.

Another caution with car loans and any other financial transactions - keep all your paperwork in good order. If you've obtained the loan online, print out a copy of everything and store it in a safe place. Never sign anything you don't understand completely. Ask questions until you understand. Talk to a third-party professional to get a different point of view. It's your responsibility to protect your own interests. Don't expect the lender to do it for you. This is the kind of thinking that led to the current mortgage crisis in the United States.

One final piece of advice: As soon as you get your used car loan, look into refinancing it, especially if you weren't able to get a zero to three percent interest rate. Refinancing sites will usually have calculators on them so you can calculate your total savings. If you can get a percentage point under your current contract, it's worth it.

Michael RussellYour Independent guide to Interest Rates