Determining The Used Car Loan Value Of Your Car
By Gavin Sanderson
Used cars can be an expensive investment, but new cars cost even more. With the recent ups and downs of the economy, it seems that there is a renewed interest in shopping around for the best deal on a used car instead.
It can cost about 21,000 dollars or more for a car. This is a lot of money even when times aren't so troubled. Can you presently afford that much? The Auto Affordability Index set up by Comerica Bank in Detroit figured that in the third quarter of 2003, it took almost 20 weeks of an average family's income before taxes to buy a car. That is about five months of income on a car. In this economy, is that worth it?
Considering the above, you can see why so many people are now considering the used car option. In this market there is a growth of loan value choices available for used cars. Millions of cars come off their lease every year, so there are plenty of four to two year old cars available to choose from when you are shopping for a used car.
Lenders use Used Car Loan Value to Finance the Car
Cars are considered investments no matter whether they are used or new. However, most lenders will finance a used car based on its loan value rather than vehicle. This is generally lower that the actual cost of the car. If you take the purchase price minus the loan value of the car, you will get an idea of how
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