In 2004, about 12 million consumers borrowed $264 billion in used auto loans
While new cars sold through franchise dealers totaled over $360 billion in 2004, used cars sales were not far behind at $330 billion with franchise dealers, independent dealers and private parties each accounting for just over $100 billion in sales.
That’s a lot of used cars and at lot of used auto loans. As roughly 80% of used cars are financed almost 12 million consumers found themselves in your shoes in 2004 taking out over $264 billion in used auto loans… and the number is rising every year. People know that find a used auto loan takes time, but the savings are worth it. Today, getting approved for a used auto loan and car loan is easier than you may have have imagined.
How is used car financing different from new car financing?
There are a lot more used car dealers (called Independents) who deal in smaller volumes. Those smaller volumes and the lower value collateral (the used car) may make used auto financing less attractive to lenders. The result, auto lenders offering reasonable used auto loan rates can be tough to come by. Read more about working with used car dealers.
That’s were SmartCarCredit comes in. Working with used car dealers and used car lenders we help you get financed. Just fill out our secure online used auto loan application and we will instantly compare your auto credit profile to the needs of dealers and lenders in your area. Further, through systems such as CreditSmarts once a dealer or lender is notified of your needs, they can work together to get you funded, all electronically over the internet. The system is designed to ensure everyone has access to a reasonable used auto loan. Used auto loan rates and terms are based on the model year of the vehicle and on the amount financed. The used auto loan rates and terms offered by our lenders and dealers are very competitive and designed to lower your overall monthly payments saving you money.
What sort of used auto loan rate can I expect?
Average finance rate on new car loans in 2005 were 5.5%. This reflects incentives offered by the captive finance arms of the major U.S. manufacturers. New car loan rates from banks were higher at 7.1%. While factors such as your credit score, loan duration and even state of residence may influence your rates more, used auto loan rates may be 20-25% higher than new auto loan rates. A 2006 survey of used auto loan rates from one national lender showed its best new auto loan rate at 6.0% while it’s best used auto loan rate was 7.3%. The rate continues to climb if you want to buy from a private party instead of a used car dealer. That same national lender’s best dealership used auto loan rates were 7.3%. Their best private party used auto loan rate was 8.5% for a difference of 13%. Read more about auto loan rates here.
What else should I know?
Getting started on a used auto loan is easy with Smart Car Credit. Just submit our easy used car loan application. You will contacted by phone or email from one of our auto lender or dealer partners. They’ll take you through the used auto loan process step by step. Make sure you ask them about their rates and all relevant fees. No reputable dealer or lender will refuse to share the details of the used auto loans they have on offer! Get competitive rates on a new or used auto loan and take the hassle out of buying your next car. Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.
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