4 Reasons Why Used Car Financing is Easier than New Cars
Although auto financing has become a lot more accessible than it used to be a few decades back, the industry has become a lot more complicated as well. For instance, conventional financial houses place a solid emphasis on individual credit scores. And that credit score encompasses a variety of factors that bind everything together into a three-digit number. All these keep auto financing way beyond the comprehension of common citizens and buyers are often left clueless as to which type is indeed easier. Here are 4 reasons why used car financing is the simpler route when compared directly with new car financing. Access these and make the smart choice.
1.Used cars are almost 50% cheaper than new cars
Which means that you will need 50% less credit to cover your car. This automatically helps your approval possibility and a lesser amount equates to lower risks. Good credit score holders can still expect to get approved for new car loans. But as your score hits the subprime range, new car loan approvals become increasingly difficult. No such restrictions exist when you shop with the best used car dealer in Easley.
2.You can get a bad credit loan in the used car market
A buy here pay here dealership in Easley, SC will offer you bad credit auto financing. These are used car dealerships with their own financial teams that extend auto loans to bad credit score holders on the condition that the applicant buys a used car from their lot. No such business model exists in the new car market as the vehicles are directly sold by the manufacturers. Here again, the lower cost of used cars makes BHPH a reality.
3.The down payment helps your approval
Say you can currently afford a down payment of $5,000. Going by the average market price of new cars at $36,000, that is less than the recommended 20%. This not only pulls up the interest you pay but also hits your approval chances as the down payment you give decides your auto loan approval. With used cars, that same $5,000 will enable you to clear 25% of the car’s price as down. Your approval possibility naturally shoots up.
4.The supply of used cars is greater in the market
New car dealerships will only have the latest models. They have no business in selling you a 2015 model. But you can get reliable used trucks in Easley with the right dealer that can well go up to the 2012 model. Consequently, the used car market has more vehicles in circulation than new cars. And this compels dealerships to ease their financing offers so that customers are attracted to buy and not too many used cars stand in their lot at a given time.
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