If you do not have enough funds to buy the car immediately, then there is the possibility of auto loans. The rate is slightly lower than for a regular consumer loan, it depends on the scores of your credit history (approximate points):
|Credit Score||Average interest rate (APR), new car||Average interest rate (APR), used cars|
Benefits of taking an auto loan in the USA
- There is no need to pay the entire cost of the car right away as loan promotions;
- Unlimited miles;
- The car will become your property after the loan is paid in full;
- You can buy a new car that you have dreamed of for a long time, but could not afford.
Cons of taking an auto loan out in the USA
- The option is the most disadvantageous in the long term, since the overpayment is huge. If the down payment is small, then they may not give a loan, if they do, then the monthly payments will be quite high, higher than in leasing. Usually, they take such a loan for 5 years, the more years, the higher your interest overpayments.;
- Large down payment;
- Before you pay the full price, the car belongs to the bank. In which case, you simply lose it. In order to protect yourself, the bank will oblige you to pay full insurance. Which will also be a big expense in your budget.;
- High liabilities for a long time – for 3-5 years. We need to have stable plans for this time.
Buying a used car in the USA
An excellent option for those who have enough funds. You can choose a decent car according to your taste and color, so that the market is replete with all kinds of offers.
Your first car cost me $ 1,500. It may be a 69,000-mile TOYTA CAMRY that had more than 100,000 miles in a couple of years. You will have many wonderful memories and events associated with this car. These cars are a great option for new arrivals. Inexpensive and reliable.
The advantages of a used car
- You have enough money that you are willing to pay, as the Americans say up infront (that is, right now).
- You are good at mechanics, you will be able to assess the condition of a used car, as well as make minor repairs yourself.
- You don’t like debt.
- Want to save money. After all, 3-year-old cars cost about 50% less than new ones. And old cars can be purchased practically for free.
- Want to move around a lot. The car is your property, you can drive unlimited miles.
- It is also a plus that you can sell the car for a return on part of your investment.
Disadvantages of buying a used car
- You will have to immediately invest the entire amount of money, and it is sometimes difficult for the budget to spend several thousand dollars.
- A used car will require investment in repairs. The cost of your old car about $ 600-800 a year for maintenance. The newer the car, the more expensive it is to fix it. And it all depends on how lucky you are. Sometimes, a seemingly ideal car always breaks down and brings a lot of trouble to the owner.
- Making a decision can take a lot of time and energy, even money, if you don’t have a familiar mechanic. A pre-purchase inspection can cost about $ 100.
- You need to pay tax for the purchase. The amount varies by state. Some in the papers deliberately lower the cost of the purchased car in order to pay less taxes, but in case of claims against the seller, you will receive a refund only for the amount that you indicated.
- Getting an annual checkup can be a challenge. Regulations vary from state to state, but old cars can sometimes be tricky.