Used Auto Loans: Less is Best
Michalis 'BIG Mike' Kotzakolios


Defined Tag: Used Auto Loans.

Depreciation, probably the most feared word in the car market world, has much less power in the used car lot. That is why used cars and used auto loans are the best bet in today’s world. A new car will on average depreciate anywhere from 20% to 30% when it is driven off of the new car lot. The idea is to let someone else take the brunt of the depreciation on the front side and when it is resold, used, and then one can pay closer to the true market value of the car.

In an ideal situation, a used car would be paid for in full with cash. We do not, however, live in a world as such and therefore a used auto loan is needed. One should expect a used auto loan to be several interest points higher than that for a new car. A general rule would be to expect interest rates in the 7.00% to 9.00% range, depending on credit history. Even when getting an auto loan, cash plays a very important role. One needs to put down as much as they can, in cash. This will not only aid in paying off the loan faster, and thus loosing less cash to interest, but it will aid in helping to keep the interest rate low.

When shopping for a used auto loan, the best institutions will be credit unions, then banks and lastly used car dealerships. Most credit unions and banks have general used auto loan rates posted somewhere instead their building or on their websites. Take the time to shop around and see what an average interest rate is in the area before going to the dealership. This will help to ensure that the dealership will not be double dipping on the sale, first on the car itself and then on the loan. In actuality, dealership make very little money off of the actual car sale, they make most of it on extras and in the loan department. Remember, a prepared consumer, in the end, is a wealthier consumer!

BIG Mike is a well known author, developer and Adsense expert as well as the owner of Niche Maniacs - a unique Adsense Marketing System designed to build long-term passive income streams from Adsense, Amazon, YPN, Chitika and other PPC services.