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Advantages of used car finance
February 17, 2021●
3 minute read●
Purchasing a brand new car is not always a viable option. Not only is it more expensive, but it also may not be a wise financial decision. The instant a car is driven out of the dealership, it can lose up to 20% of its original value. If you cannot afford this loss, sometimes purchasing a used car is a more responsible option. ‘Used car’ does not necessarily mean old; often used cars can look brand new if they were well looked after.
Can I get finance on a used car?
Used car finance is a great option to offset paying out what is, at most times, still thousands of dollars. Any car, whether it is new or used, is still a very expensive purchase. There are many lenders that offer used car loans in Australia, including Jacaranda Finance.
What are the advantages of purchasing a used car?
Used car loans are great because they allow you to save on the instant depreciation of brand new cars. There are a range of other advantages that come with purchasing a used car.
Used cars depreciate at a slower rate compared to brand new cars. For this reason, they are cheaper to purchase. Even a relatively new car will be considerably cheaper than if you were to purchase it brand-new and can sometimes still come with part of its initial warranty (depending on the age of the car and the length of its warranty).
Smaller loan amount
Since you will be spending less on the purchase price, you will have less you need to borrow. This means you may pay less in interest and monthly fees over time, though this will depend on the interest rate and life of your loan.
Again, with less money you need to repay, it will likely be more realistic for you to repay your loan amount faster.
What are the disadvantages?
Of course, there are some ‘disadvantages’ of purchasing a used car over a car that is brand new.
The older the car, generally, the more you have to spend on repairs (especially if it is out-of-warranty). The driving behaviour of the previous owner plays a part in this, which is why a vehicle history report is vital when purchasing a used car. It may also be helpful to get a car valuation (link this to the car valuation blog) to ensure that there are no major faults with the vehicle.
Options may be more limited
As the car is already used, you won’t have the option of add-ons which are usually available when purchasing a new car. These add-ons include things like window tinting, folding exterior mirrors, rear parking aid and other interior customisations.
Used car finance with Jacaranda Finance
If you are looking to finance a used car, Jacaranda Finance offers used car loans from $5,000 to $35,000. You can choose to finance either a portion or the entirety of a second-hand car with a used car loan from Jacaranda. The repayment terms will range from 1 to 4 years, depending on how much you wish to borrow.
Applying for a used car loan could not be easier with our 100% online, paperwork-free application. All you need to apply is a few spare minutes and a device with an internet connection. Bad credit is not a problem at Jacaranda; we could pair you with one of our bad credit used car loans for used vehicles.
To make your car loan approval time as fast as possible, ensure you have the supporting documents required ready when you apply.
Written by Jacaranda Team