Five Questions to Ask Before Financing at Used Car at Myers Car Canada
Five Questions to Ask Before Financing at Used Car at Myers Car Canada
Posted on June 14, 2021
Drivers can realize great savings by opting to purchase a used vehicle instead of a new one. Vehicles suffer 10-20% deprecation as soon as they are driven off the lot, and they just continue losing value from there. Some brands hold their value better than others, but buying a used vehicle almost always results in significant savings for buyers.
Financing a used car can seem daunting to buyers who have not gone through the process before. Myers Car Canada offers in-house financing options to help drivers get in a new-to-them car and get on their way!
Here are five of the top questions to address before financing and purchasing a used car.
How Much Does The Vehicle Cost?
Prospective buyers should be focused on the overall vehicle cost when shopping around. It is important to make a budget and stick to it when buying. However, while many buyers focus simply on the vehicle's sticker price, there are many other additional costs to consider.
These additional costs include taxes and fees that are due at the time of purchase, as well as interest that accrues throughout the course of a loan's term.
Can I Afford It?
After the additional fees and taxes are added in, buyers might find the cost of a vehicle above what they had originally budgeted. To be prepared for the total cost of a vehicle purchase, prospective buyers should utilize a car payment calculator before heading to the dealership.
A car payment calculator will factor in items such as a down payment or trade-in, plus taxes, fees, and interest, to give buyers an estimate of a monthly payment and/or total vehicle cost.
Should I Buy or Lease?
Buying and leasing are the two options for vehicle financing. Buying means that by the end of the financing term, the vehicle will be owned free and clear by the buyer for however long they want to keep it.
On the other hand, leasing means that a driver is basically borrowing a car in exchange for a lower monthly payment and more restrictive guidelines. At the end of a lease term, drivers can either buy the car for a set amount of money, lease a different car, or walk away altogether.
What are the Terms?
There are two important terms to consider when financing a car. The first is the loan length, which is usually between three and six years. The second is the interest rate, which can vary widely depending on a buyer's credit score and can seriously impact the monthly payment.
What if I Cannot Afford It?
It is very important to seriously consider how financing a used car will impact a driver's budget. While all the bells and whistles on top-level trims are great, they come at a high cost that could result in cash flow difficulties.
Myers Car Canada works with many well-regarded financial institutions to help drivers finance a used car with a payment that fits in their budget. It is important to consider these five questions and others when starting the search for a new vehicle.