Is it a good idea to finance a used car? | 5 Star Auto Plaza

Is it a good idea to finance a used car?

Is it a good idea to finance a used car?

September 16, 2014  

auto financing in CottlevilleAfter you have carefully browsed the available selection of used vehicles, test driven a few to try them out, determine the features you must have at a price you can afford, you must next decide how to pay for your “new” used car. There are distinct advantages to both paying for your auto in full and financing your purchase. 5 Star Auto Plaza has a large inventory from which to choose and provides auto financing in Cottleville for customers with all credit types.

While there is definitely an appeal to buying a vehicle with cash, it may not always be practical or within your budget to do so. Buying a used auto is beneficial in that the original owner takes the depreciation factor instead of you. With a larger down payment, this can help to reduce the length and scope of your loan, however this is not always an option for all customers.

For insurance purposes, there are also two sides to consider. Buying a used car outright can allow you to purchase only liability insurance, if you so desire. This is the minimum requirement for vehicle insurance. If you finance the cost of your used car, comprehensive insurance is mandatory, since you do not technically own the car until it is paid off. This can cost a great deal more and should be factored into your budget beforehand.

The experienced finance team at 5 Star Auto Plaza can help. We are highly skilled in all things auto finance and can make sure to help select the loan that is best suited for each individuals budget and credit standing. We offer quality service and will help make your used car buying experience a breeze.

To discuss auto financing in Cottleville with the used car professionals at 5 Star Auto Plaza, call us at (636) 940-7600.