Used Car Loan – Low Monthly Payments Available?
Posted on | September 3, 2009 | No Comments
Getting a used car loan with low monthly payments has increased in popularity in part because of the Cash for Clunkers program that was major news in July. The program was a success in that it brought interest back into the American auto industry. The auto industry has greatly struggled through this recession. Americans have lower credit scores and much less money to spend so a vehicle is one of the last things on their mind. With government assistance, getting a used car loan has become a little bit easier and more attractive.
Finding a low monthly payment used car loan is not as hard as it once was. With used cars gaining in popularity, many banks and lenders are more than willing to help you pay for your transportation. Some national banks are great tools to use but there are also local banks that can give you an even better interest rate. Ultimately, you want to find a used car loan with the lowest interest rate but also with low payments.
This is sometimes hard to do because when you want low payments, you are going to end up paying interest over a much longer period of time. If you are paying interest over a longer period of time you are going to end up seeing that you will have a higher interest rate. It is the same way with the mortgage industry; 30 year mortgage rates are always higher than 15 year mortgage rates.
Please be aware of the fact that the longer you pay on a car loan the more interest you are going to pay. Even if your interest rate is relatively the same for a shorter period of time, you are still going to end up paying more because you have many more payments. It may seem like a great idea to try and get low monthly payments but if you can afford to make higher payments it will be worth it in the long run.
Getting a used car loan with low monthly payments is definitely available to you but you need to ask yourself if you are willing to pay much more in interest over time. The lower your monthly payment, the longer the term of your loan is going to be. If you pay 5% on a 36 month loan that is going to be much less than 5% on a 60 month loan. Be aware of this when you go through the loan process.
Author: Jeremy North
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