| We all know that the interest rates are different | | | | purchase a used car.d. Only new cars are qualified |
| between new and used cars, and they can never | | | | for zero percent financing and not used cars. The |
| be the same, but do you have any idea why can't | | | | rule of thumb is the older the car, the higher the |
| they be the same? | | | | interest rates. This is because of the high |
| Fine, let us review together on some of the key | | | | depreciation rate for the used car.e. The rate will |
| reasons why used car tend to have a higher | | | | also be different between a secured loan and an |
| interest rates compared to a new vehicle.a. A | | | | unsecured loan. The latter will come with a higher |
| used car loan tends to have a higher default rates | | | | interest rate for this type of loan will cover for |
| compared to those of new car.b. The value of | | | | the car insurance as well as for any offset of |
| used car is difficult to be assessed compared to | | | | money which you need to top up with should you |
| new car. Normally the value of a used car is | | | | trade in your car one day and found that it is in |
| estimated based on the age of the vehicle and | | | | upside down situation.f. No history of possible |
| the approximate standard market value of the | | | | accidents or damage for a new car. One of the |
| used car based on its model and the vehicle 's | | | | key reason why people is less skeptical when it |
| history.c. Less incentive is given for used car | | | | comes to new car purchase is because they do |
| purchase. More people likes to buy new cars | | | | not have to worry about any undisclosed |
| because they will be liable to get a lot of | | | | accidents or problems which the particular car |
| incentives from the sales dealer when they buy a | | | | may have. Instead for a used car, the owners |
| new car, these incentives may be in the form of | | | | may choose to hide the real underlying issues or |
| discounts on the vehicle selling price, or it may be | | | | problems of that vehicle. Because of this reason, |
| of a lower interest rate. However all these | | | | as a rule of thumb, used car is normally attached |
| incentives are not made available at all when you | | | | to higher interest rate as compared to a new car. |