Realizing that you owe more money than the value for your
car is a terrible feeling. Unfortunately, many people find themselves in this
predicament—about 60% of car owners, in fact.
You do not have to be one of them. You can get a
new-to-you car that delivers the features and performance you want without
taking on a car loan that is likely to leave you “under water.”
How? By shopping for a quality pre-owned vehicle.
Makes Pre-Owned a Better Option
Being upside down on your car loan happens when you owe
more on your vehicle than the vehicle is worth. It happens frequently to buyers
Do not make any down payment (i.e., they
finance 100% of the cost of the vehicle)
Buy cars in the current or just-past model
Have no trade-in or have a trade-in with
excessive wear or damage
Takes on a loan with payment terms longer
than the buyer intends to keep the car
But all of these factors are controllable. That means you
can prevent being upside down on a car loan by:
Making a down payment (20% recommended) on
your new vehicle
Purchasing a vehicle without financing more
than 80% of the cost, including taxes, titles and fees
Selecting financing terms that result in
paying off the vehicle in four years or fewer
Purchasing a car that retains its value
Used vehicles are more likely to be available at a price
point that allows you to avoid bad financing terms. Plus, dealers often have
more room to negotiate, allowing you to bring down the price tag even further.
And since used cars do not depreciate as fast as new cars, you are likely to
keep your head above water for the entire life of your auto loan.
to Look for Pre-Owned Vehicles
You are most likely to find the right vehicle and
affordable car loan when you go to a reputable dealer, like Unique Enterprises in Moriarty. We take
pride in helping our customers find the best car for their needs and their
budgets. We offer no-pressure auto sales and low-interest financing (for those
who qualify). Browse
our inventory online and visit us to take a test drive.