Though it’s nice to dream about getting the perfect new car, it’s not always practical. The truth is, owning a new car is never a sound financial investment. For one, the moment you drive a new car out of the dealership parking lot, it loses 15% of its original value. By the end of the first year of driving it, it has lost 30% of its value and by five years of driving it, it will have lost 65% of its value. Rarely will a car sell for more than what you bought it for.
Because of this, a car is more of a personal investment than a financial one. By purchasing a car, you are investing in yourself. That’s why it makes more sense to buy a used car if you are on a budget or in a financial hardship. Instead of buying a new car at full price, why not buy a one-year-old used car at 70% of its original value?
While on a budget, cars should be more about function than features. If you simply need a car to drive to and from work, it isn’t very practical or wise to purchase a Ferrari (unless you can afford to). Auto loans are similar. Even though you can purchase pretty much any car you would like with your auto loan, it doesn’t mean you should. Used cars are a great way to purchase a sufficient, functioning vehicle while on a budget.
However, it’s important to know that used auto dealerships can be some of the worst places to get a loan for your car. The interest rates are often times more expensive and the terms not as competitive as if you were to get an auto loan from an outside lender. National Car And Loan can help you there. Even if you have poor credit or are in a financial hardship, NationalCarAndLoan.com is here to make sure you get a great auto loan quote without being taken advantage of and at no expense to you!