Most of us choose to take out a car loan when getting a new vehicle. Depending on whether you choose a brand new vehicle or something used, your financing options will be a little bit different. Here at Tropical Ford in Orlando, Florida, our financing department works hard to provide you with affordable loans.
New car loans
When you buy a new car, you get the advantage of being its first owner. New car loans also have their own benefits. When compared to used car loans, a new car loan will usually have a lower interest, which can help you save money on financing costs.
Ford frequently offers special rates and financing opportunities on new car purchases. Depending on your eligibility, this could be low to no interest for the life of the loan. You may also be able to take advantage of “bonus cash” or other rebate offers.
Another way to save money with a new car loan is by waiting for sales events. These usually happen near holidays, especially at the end of the year.
Used car loans
Buying a used car is a great way to save money right from the start. If you do not have enough money to pay cash for your used car, you can take out a loan. Used car loans may have higher interest rates, but their overall term will be shorter, meaning you will be able to pay off the loan faster.
Used cars depreciate much slower than new cars. This means there is less of a chance of you being “upside-down” in your loan, which is when you owe more than the car is worth.
Another benefit to used car loans is that they are more accessible for a wider range of the population. If you’ve have had credit issues in the past, it will likely be easier and more affordable to get a loan for a used car.