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Getting a New Car Loan

Author: Dan Sherman Author Ranking Blue | Posted: 22-06-2006 | Comments: 0 | Views: 96 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
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Buying a vehicle is one of the most important decisions you can make. You may already know which automobile you want and there is no debate about the color. The decision-making lies in finding a good new car loan. You don't need to do much research to find what you like. However, you need to do quite a bit of research to finance what you like.

I immediately knew that I was going to buy a PT Cruiser. This is my favorite vehicle ever designed in the history of auto manufacturing. Once I saw the great little vehicle I knew that I had to have one. I started looking into various ways to finance the Cruiser and found a few surprises in new car loans. Many of these surprises were pleasant.

The first thing that surprised me about financing and automobile is the benefit of buying a brand new car rather than a used on. I immediately started to browse the used vehicle section and was guided by a friendly salesperson to the latest selection. The salesperson explained that it is actually easier to get a new car loan than it is to get a loan for a used vehicle. This came as shock.

Cars that come right off of the showroom floor are more expensive than used cars. One would think that a new car loan would be more difficult to get. However, older cars are more difficult to finance because the lenders look at the overall value of the purchase. If you buy a used vehicle, the bank has less collateral, in a sense. A new car loan insures that the lender will get a newer, and more valuable, automobile if the loan goes into default.

This is a bleak view of the situation but is does work in the favor of those of us who want showroom-young automobiles. Getting a new car loan is easier and there is nothing better than being the person who puts that very first mile on the odometer. However, the ease of getting a new car loan versus one for a used automobile can work against us, too.

Many of us know that the vehicle depreciates once that precious first mile is accumulated. The largest percentage of depreciation occurs in the first two years. You are going to make payments on a new car loan during those first two years. The ideal would be to buy a car that was two years old. This way, you are not making payments for a depreciating vehicle.

Proponents of a new car loan would say that this argument is moot. The vehicle will depreciate in value no matter what. That is the nature of automobiles so enjoy your young vehicle and relax.

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Article Tags: Loans, Interest Rate

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Dan Sherman has started an information based website to offer advice on topics similar to those discussed above. Visit him at his website by Clicking Here (or go to http://www.theinterestrate.info).
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Frequently Asked Questions

If i use my checkbook ira to loan money to a ...
By: joeldude1 | 30-08-2008
if i use my checkbook ira to loan money to a friend or sibling how much interest am i required to charge

Should i pay off the balances on my credit cards ...
By: purpleandangels | 29-08-2008
should i pay off the balances on my credit cards or leave a small balance to maintain my credit score?

Slot winnings
By: gayle | 29-08-2008
can you answer a question about the irs and taxes on slot winnings the irs has has assessed taxes owed for 2004 in the amount of 259,000 on slot winnings.  I am disabled due to a car accident in aug of 94 I have been recieving workers compenstion since the accident and in california you this money is not taxable so I have not filed income taxes since.  Early this year the IRS sent me a notice claiming I owed for 2004 from slot winnings I do not know how to prove that they are wrong The only thing I can think of is in 2001 my home was robbed and everything I owned was stolen including all my personal info it has and continues to be a nightmare my credit is completely destroyed and old checks and personal inf continues to be used from california to new york so i am thinking that some how my info was used at the indian casinos my passport, birth certificate, marriage license, social securety, deed to my home, credit cards, and drivers license along with check from old closed accounts was taken this has been a overwhelming experiance with no end or hope that it will ever end.  Anyway did not mean to deviate away from the question that most concerns me and that is the IRS AND $249,000.00 that has now been assessed against my husband and myself they have all ready put a levy I think that is what my husband called it on the home we live in I am fearful that they may attempt to try and take the home that has been in my family since i was a youg girl and I would hate to loose this house we do not owe any money on either property do I have any recourse at all signed:  still hopeful

Credit card debt
By: Bruce Middleton | 29-08-2008
i have alot of unsecured debt. Its making life tough right now. whats the best way to handle it? I don't own a home, but i was thinking of some type consolidaton loan. could you help me on where to look for this type of loan. I have good credit

I have some equity on my home. It is a seller's ...
By: Ralph | 29-08-2008
I have some equity on my home. It is a seller's finance deal. The home cost me $26,500. I have about $16,000 in equity and want to Pay the balance off and invest in another property to flip. Can I get a loan $75,000. with a note to repay as soon as sell the home I have at the moment?

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By: Tanna | 29-08-2008
If I buy a rental property, how much would the depreciation be per year?

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