Why Financing A Used Car Makes More Sense Than Any Other Option

1. Why Financing A Used Car Makes More Sense Than Any Other Option Buying a used car (buy used car linden nj) is the best decision you can make on multiple levels, which I’ll explain in detail so be sure to read the entire article. The reasons are as follows: 1. CREDIT — Boost your credit score 2. SAVE MONEY — Saving money regarding depreciation 3. EQUITY — Making sure your car can provide equity 4. WARRANTY —You’re protected from any breakdowns 5. PROTECTED BY LAW — Protected by state laws CREDIT: There are a few different variables to increasing your score whether your credit is new, or you’re in the process of rebuilding. Having what’s considered high ticket items on your report will help validate you with the credit companies. These items consist of any amount over $10,000-$15,000,i.e. an auto loan, a mortgage, student loans, personal loans, etc.. Auto loans have a major advantage over the other high ticket items mentioned because of its shorter term. The average term for a mortgage or student loan is usually between 15–30 years. An auto

2. loan on the other hand is normally only between 36–72 months. This means you’ll reap the benefits of It a lot faster, and because it’s it’ll add diversity to your report. SAVE MONEY: DEPRECIATION — When you buy a brand new car off the showroom, as soon as you drive off the lot it takes a huge hit in depreciation. Depending on the car and how well it retains Its value will determine the loss, however, it’s usually between 10%-20%. For example, if the car’s MSRP is $50,000 it would depreciate $5,000-$10,000 the second you drive off the lot. Then the depreciation process happens gradually over the next few years. The rate of depreciation will depend on various factors such as make, model, mileage driven, and wear & tear. The point is, it’s better to let someone else take that initial hit of 10%-20% when buying brand new. It’s the smarter financially literate decision to make. LEASE —Lease’s usually only ever make sense if you’re intending on putting the car under your business, at which point you’ll have the ability to use the payments as a tax write off. Another scenario where leasing makes sense, is if you switch cars frequently, meaning every 1– 2 years. Outside of these reasons leasing is a complete waste of money considering, when the lease is over you’re left with nothing. Correction, you’ll be left with a bill due to mileage overage or damages done to the car. With finance you keep the car once it’s paid off. Even if you decide to trade in midway through your finance term, there’s a good chance

3. you’ll have equity which you can apply to the next loan. Whether or not you’ll have equity will depend on a few variables which I’ll explain in the next paragraph. The point is you cannot do this with a lease. On the contrary you’ll be penalized and charged extra for breaking the lease before completing the term. EQUITY: Equity is when your car is worth more than what you owe on the loan. For example, if your car is worth $50,000 but you only owe $40,000, then you have $10,000 in equity. Most likely you’ll have equity before you’re done paying the loan off. This comes in handy if you decide to trade the car in, you’ll then be able to put the equity towards the new loan. The amount of equity will depend on the following: The car’s value retention (which is directly corelated to make and model), initial down payment, terms of the contract(length, interest, structure), and wear and tear. Once you’re finance term is up, you have options at your disposal. You can sell it privately, trade it in for another car, or keep it in the family for the next generations to enjoy. WARRANTY: Many times people believe if they’re buying a used car, it’s best to buy something cheap enough to buy cash from a private seller, and here’s why this thinking is flawed. First, because if the car breaks you’ll have

4. to pay for the repairs out of pocket. Second, if the damage is more than the car is worth (blown engine or transmission) then you just lost whatever amount you paid for the car. The warranty offered by dealerships will vary from one to the next, however the majority at least cover 30 days or 1000 miles engine & transmission. You of course have the option of purchasing an extended warranty for an extra fee, at which point you can choose the coverage and length of time. Some dealerships already have the amount of an extended warranty included in the price of the car. Extended warranty is always recommended, however, you’ll at least have the basic 30 day warranty to count on. PROTECTED BY LAW Laws vary from state to state, however most states have a lemon law which protects the customer against purchasing a faulty vehicle. New Jersey’s Lemon Law protects consumers who purchase vehicles that develop repeat defects or lengthy unusable periods during the first two years or 24,000 miles. You won’t get this same protection when you buy a car cash from a private seller. Last but not least, of course search for dealerships that keep all of these things at the forefront of their business. The reason you’d want that is because they’d make sure to always have cars, prices, and processes which will align with everything mentioned in this article. One of the best dealerships which consistently stays on target with this way of

5. doing business is carzonenj.com. They’re a specialty store which focus on Jeep Wranglers and Pickup trucks. The quality of the cars ensure equity (buy used jeep linden nj) and protect against depreciation. They work with the best banks to get you the best rates possible and all of their vehicles come with warranties. Be sure to visit them for your next wrangler or pickup truck.