Used Car for sale vs New Car Interest Rates & Incentives
For people who do not have the cash to buy a vehicle outright, things get more complicated when you start talking about taking out a car loan. You might expect that the interest rates for used cars for sale would be lower than they are for new automobiles because they’re also cheaper to buy. In fact, the opposite is true.
If you want lower finance rates, auto manufacturers will offer great incentives to attract buyers by offering low-interest rates — sometimes as low as 0% over a set period of time — as well as cash rebates. This means that the bigger starting price you see on a new car can wind up being less overall, plus you can split the cost into more manageable payments over time.
Leasing a Used Vehicle for Sale vs a New Car
With both new and used vehicles for sale, you also have the option of leasing. With leasing, you will often have lower monthly payments than if you finance the same car with the same loan terms.
Leasing has the added benefit that you can start a new lease every few years on another new car. However, in the case of used vehicle for sale leases, they are not so common as new vehicle leases. You may have to hunt around for a dealership willing to work with your needs. Used car for sale leases can be a solid option for you since the vehicle will already have born the brunt of depreciation before you get it, meaning your monthly payments would be lower than a lease on a new vehicle of the same make and model.