Latest Automotive News

Subscribe in a reader




Auto Price Quote
Get a free auto price
quote from Edmunds!

New Car Loan

Email   small font medium font large font

Google
 
Web AutoNews24h.com

New Car Loan

By: Michael Bailey

Buying a vehicle is one of the most important decisions you can make. You may already know which automobile you want and there is no debate about the color. The decision-making lies in finding a good new car loan. You don’t need to do much research to find what you like. However, you need to do quite a bit of research to finance what you like.

I immediately knew that I was going to buy a PT Cruiser. This is my favorite vehicle ever designed in the history of auto manufacturing. Once I saw the great little vehicle I knew that I had to have one. I started looking into various ways to finance the Cruiser and found a few surprises in new car loans. Many of these surprises were pleasant.

The first thing that surprised me about financing and automobile is the benefit of buying a brand new car rather than a used on. I immediately started to browse the used vehicle section and was guided by a friendly salesperson to the latest selection. The salesperson explained that it is actually easier to get a new car loan than it is to get a loan for a used vehicle. This came as shock.

Cars that come right off of the showroom floor are more expensive than used cars. One would think that a new car loan would be more difficult to get. However, older cars are more difficult to finance because the lenders look at the overall value of the purchase. If you buy a used vehicle, the bank has less collateral, in a sense. A new car loan insures that the lender will get a newer, and more valuable, automobile if the loan goes into default.

This is a bleak view of the situation but is does work in the favor of those of us who want showroom-young automobiles. Getting a new car loan is easier and there is nothing better than being the person who puts that very first mile on the odometer. However, the ease of getting a new car loan versus one for a used automobile can work against us, too.

Many of us know that the vehicle depreciates once that precious first mile is accumulated. The largest percentage of depreciation occurs in the first two years. You are going to make payments on a new car loan during those first two years. The ideal would be to buy a car that was two years old. This way, you are not making payments for a depreciating vehicle.

Proponents of a new car loan would say that this argument is moot. The vehicle will depreciate in value no matter what. That is the nature of automobiles so enjoy your young vehicle and relax. 

Receive the latest automotive news by email!

Enter your email address:


Find the new car you want on cars.com

Related news
Perhaps one of the most valuable tools for car shoppers, a car loan calculator can provide instant estimates on monthly payments, how much you can afford and the total cost ...
TORONTO (CP) _ Car loan company VFC Inc. (TSX: VFC), which endorsed a $326-million takeover bid by TD Bank last week, has signed up General Motors Acceptance Corp. ...
TORONTO (CP) _ Auto loan provider VFC Inc. (TSX:VFC) has posted a 65 per cent profit boost in its latest fourth quarter on the heels of a $326-million takeover offer by TD ...
TORONTO (CP) _ TD Bank Financial Group (TSX:TD) declared victory Wednesday in its $326-million takeover of VFC Inc. after about 90 per cent of the used-car loan company's shareholders tendered into its bid. The ...
Rising delinquency rates on car and truck loans have some industry analysts concerned that subprime mortgage troubles could spill into the U.S. automotive finance business. In a note to investors Monday, Lehman Brothers ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!


New Car Loan
> © 2006-2011 AutoNews24h.com except where otherwise noted