Financing A Used Car

Once you have done your initial homework; which is finding a used Mazda in New Lenox that meets your specific needs as well as your budget, then it’s time to address financing the purchase.

Options for finance:

With the details out of the way you next have to determine how you are going to pay for the vehicle. There are two principal options available to those who are going to purchase a used car; the first is to pay the price in full at the time of purchase and the other is to finance it over a period of time. For many people the first option, paying it in full, is not a practical choice.

When you buy the car over an extended period of time the cost of ownership is higher than paying cash. With the financing option it means that you have to pay the price of the car plus interest on the loan as well as any administration or application fees. When you are shopping for a loan the annual percentage rate (APR) offered by the various lenders is that which can be used to compare the offers; a lower APR means the cost of the loan will be lower.

Are the payments affordable?

In the majority of cases the length of the loan when buying a used Mazda in New Lenox is shorter than the term available for purchasing a new Mazda. This makes sense as a percentage of the cars life expectancy has already been consumed by the previous owner. This is the time when the buyer must determine a balance between the monthly car payments with the length of the loan.

In many cases a used car buyer will be offered up to three years to pay for the car. When you consider that the term on a new car purchase can be as much as five years the actual monthly payments for the used car purchase may be close to the payments required to purchase a new car, of course the term is an additional two years.

Lender options:

In most cases large banks will not offer financing on used cars. When providing finance for a car purchase the condition of the car is important, larger banks simply don’t have the time or the inclination to carefully inspect the condition of a used Mazda in New Lenox, they would rather value a new car based on the VIN number. This leaves the lender three practical options; local banks, his credit union or the dealer. As the dealer is in a far better position to determine the cars condition they are in the best position to know it’s worth.

If you are looking for the best possible deal on a used Mazda in New Lenox you are invited to visit Hawk Mazda. Hawk Mazda are located in Joliet, IL, serving the Naperville, Frankfort and New Lenox areas.

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