Guaranteed Car Finance - Fact or Fiction?

Car Finance, Car Shopping No Comments »

Guaranteed car finance companies have helped thousands of customers who have different past credit problems to finance the purchase of a new or used car. Some people need guaranteed car finance simply because they have no credit history. So, thank goodness for guaranteed car finance arrangements whereby you can find a car you like and drive it out of the showroom within minutes, right? Maybe not. You might want to look a little closer before signing those papers…

Rates

As usual, the rate you are offered will depend upon your credit history. If your credit history is bleak at best, then you can bet your quote will include an interest rate that is sky high upon “approval”, and be careful with that as well, because the rate advertised is not always the rate you will get. I’ve heard of some guaranteed car finance companies coming back with an interest rate as high as 15% and higher! That’s like credit card interest on a larger principal amount. Car finance rates are determined by the percentage or cost added onto the loan by the lender and the dealers get paid a commission on higher purchase deals and will try to charge a rate that is more beneficial to them, and not you.

Payments

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Should I Buy a New Car or a Used Car?

Car Insurance, Budgeting, Car Shopping 3 Comments »

Deciding whether to buy a new or a used car can be difficult. When considering your options, which of these three do you fall under:

  1. I am looking for a particular car, and am not concerned with its depreciated value over time.
  2. I am looking for a balance between investment value and features/preferences.
  3. I am looking for a car that will retain the highest value possible over time.

There are distinct advantages and disadvantages no matter which way you choose to go. But let’s look at my recommendations based on the above categories. If you fall into Category 1, you should buy a new car, and drive it for years to come. The key thing here is, that you do not sell you car within the first two years, as new cars lose 60-70% of their value during this time. You should expect less maintenance costs with a new car, but I highly recommend obtaining a great warranty package as well to further reduce your maintenance costs, the point being that since you will be making a car payment, you want to have as few unforeseen costs as possible.

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