Washington Car Loan for Used Vehicles

The experience and logistics of buying a used car with a Washington car loan are very different from those of a new-car purchase. Here, we'll discuss the ins and outs of used-car buying to facilitate the process.

Why Buy Used?

On average, a used car costs 20%-30% less than a new car. The benefits of buying a used car go far beyond just the sticker-price savings, however. For one, you can get more car for your money. You will be able to purchase a vehicle with more amenities, higher performance, etc. without having to spend too much money. Secondly, your car insurance premiums will be lower on a used car. Used cars tend to be cheaper to repair and replace, which is why insurers will cut you a break. Finally, the used vehicles on the market today are more reliable than ever. You can use a Washington car loan to purchase a certified pre-owned vehicle, for example, which would give you added security.

Choosing Your Purchasing Route

When purchasing a used car, you have two primary options: you can go through a dealership or you can buy from a private party. You can use an independent Washington car loan with either, but each avenue has its own advantages. With dealerships, you can take advantage of the like-new cars that are returned from leasing customers. These vehicles are often deeply discounted but are in excellent condition. Furthermore, most dealerships offer certified used vehicles that come with supplemental warranties for added peace of mind. Conversely, the price negotiation process is usually much easier when buying a car from a private party. Private parties also typically offer lower prices than dealerships. Of course, there are inherent risks in buying from a private seller. For example, you cannot take the seller at his word about the car's condition, and you will have to pay to have a mechanic look at the vehicle.

Arranging Financing

The main drawback to buying used is that your Washington car loan will likely have higher rates than would a new-car loan. Given that fact, it's especially important that you comparison shop for the best rate on a loan for a used car. As with new cars, you would do well to avoid the dealership in this matter. Negotiating vehicle price and financing at the same time can get confusing, and the dealer may deliberately overwhelm you in order to give you a raw deal on the loan or the sticker price. To simplify things, you can get a third-party car loan and pay in cash at the dealer or a private party, whichever you choose. Another advantage to independent financing is that it forces you to stick to your budget. With dealer financing, it's easy to say yes to all the upgrades and just borrow more to cover the added expense. You avoid this temptation with a loan from a third party.

If you are still unsure about any concepts discussed so far, some answers to frequently asked questions have been provided for more information.