One of the painful facts about buying a new car is that it takes a significant hit in value the second you drive it off the lot. At that point, it becomes “used,” and the resale value drops substantially. In addition, the first year of depreciation is usually about 20%, which means you will lose a lot of money on a new car due to depreciation, especially if you made a small down payment. Remember that you can get Washington auto loans on new or used vehicles, so consider the cost of depreciation in your decision.
Though you might be able to get a lower purchase price on a used vehicle, Washington car loans for used cars are typically not as competitive as those for new cars. The interest rates on Seattle auto loans for used vehicles are generally higher than they would be for a new car. When deciding whether to buy used or new, consider the savings on the purchase of the vehicle with the extra cost of Washington car loans for used vehicles.
If you buy a used vehicle from a private party or a fly-by-night used car dealership, you are taking a considerable risk with the reliability of the car. Ideally, you want a used car that comes with some type of warranty, and you usually have to pay extra for this warranty. The best way to get a reliable used vehicle is to go with a pre-certified car from a dealership. If you buy a used car, you will have to provide additional information to your lender in order to get Seattle auto loans. On the other hand, if you buy a new car, most vehicles come with at least a three-year warranty, if not longer. The peace of mind might be worth the extra expense.
Perhaps you’re attracted to the potential savings a used car could offer, but you have a burning desire to drive the latest model vehicle. If so, you would probably be unhappy with a used car, and you’re better off getting Washington auto loans for a new vehicle. If, on the other hand, you don’t mind not having the latest model year, Seattle auto loans for a used car can save you a bundle.
