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Used
Car Draw Backs
Higher
Interest Rate
If you're looking at a used car, forget about those lower
percent auto loans. Car manufacturers offer such low-rate
loans
only
on new vehicles. One drawback of used cars is that if
you borrow money, you'll pay a higher interest rate. Often,
banks charge a full percentage point more, or higher,
on a used-car loan.
Most lenders also won't finance more than 80 percent of
a used-car's value, so you'll need to come up with the
other 20 percent in cash or trade. Lenders financing more
than 80 percent may also charge exorbitant interest rates.
Fewer
Options
Even at the used-car superstores where hundreds of vehicles
are for sale, your options will be limited as to color,
body styles and equipment. Got to have a red two-door
with a power sunroof etc.? It's matter of sheer lady luck
whether you'll find it. Used-car dealerships big and small
stock high-volume models equipped the way most people
want them.
Detail
crisis
Unlike new cars, there aren't
brochures or price stickers listing available features
and their prices. Be ready to compromise on nearly everything
you want. Look for the car that comes closest to suiting
your needs at the lowest price.
| New
Car Pros | | New Car Draw Backs | | Ownership
Cost & Considerations |
| Used Car Pros | | Used Car Draw Backs |
| Used Car Sources |
| The Final Decision |
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