| s are an expensive investment. Come to think of it, | | | | Lenders pay attention to Used Car Loan Value |
| all cars are an expensive investment. But new cars | | | | When financing a used car, most lenders you’ll |
| are even more expensive compared to used cars. | | | | find will only offer finance for its loan value, instead |
| And with today’s present economy, lots of | | | | of the vehicle itself. Cars are important investments |
| nervous folks have come to see the better sense in | | | | as many of you may have realized already. So never |
| buying used cars as opposed to buying a new one. | | | | mind if it’s a used car or a new car, cars are |
| A new set of wheels could cost you around $21,000 | | | | assets which you can make use of when money is |
| plus. Already, this is a big financial commitment even | | | | tight. |
| in the best of times. But what about when times are | | | | The loan value of a used car is generally lower than |
| tight? Can you still afford to spend that much on a | | | | the purchase price of the car. But if you know what |
| car? And is it worth it? | | | | the loan value of your used car is, you can compare |
| It takes 19.9 weeks of median family income before | | | | that to the purchase price. The result of your |
| taxes to buy a new car. The Auto Affordability | | | | comparison should give you a rough estimate of the |
| Index compiled by Detroit-based Comerica Bank | | | | amount of money you would have to put down for |
| stated this in their report during the third quarter of | | | | your car. As previously stated, lenders pay more |
| 2003. If you calculate it right, 19.9 is roughly five | | | | attention to the loan value of your used car than on |
| month’s worth of salary spent on a car alone. | | | | the vehicle itself. |
| Is this a wise way of spending our hard-earned | | | | Used Car Loan Value: Knowing what your loan value |
| money? A lot of people disagree. It’s simply | | | | is saves you time and trouble |
| foolhardy to spend $21,000 on a car when the | | | | Knowing what the loan value of your used car is |
| economy is slowing and the headlines are filled with | | | | gives you an estimate of what you need to come up |
| job layoffs. | | | | with when you apply for car loans. Let’s say |
| Fortunately, many car buyers like yourself are | | | | your dealer sells you a used car for $5,000. The loan |
| afforded many loan value options which you can | | | | value for that car should be around $4,000. That |
| take. Loan value for used cars in the market is | | | | leaves you with $1000 if you compare the purchase |
| flourishing in these hard times strangely enough. In | | | | price with the loan value. This should be the amount |
| fact, millions of cars come off lease each year and | | | | you would have to play with when negotiating for |
| that leaves you with tons of 2 to 4-year-old vehicles | | | | down payments. By knowing this, you save yourself |
| to choose from. Not really a bad scene when you | | | | from the trouble of applying for auto loans for a car |
| think about it. With all these options, you can certainly | | | | that is well above your means or not within your |
| take your sweet time when considering getting loan | | | | price range. |
| value for a used car. | | | | |