| Most of us realize that used cars are usually less | | | | interest rates charged for older models. Why? The |
| expensive than new cars. But we often still shy | | | | lender assumes more risk with an older vehicle, and |
| away from that kind of bargain because we may be | | | | they pass some of that risk on to you in the form |
| intimidated by just what we may be buying. Could it | | | | of a slightly higher rate. Does that mean you should |
| be a great deal, or a lemon? And how do you know? | | | | only buy newer models? Not necessarily. That newer |
| Well, there actually is a way to work through the | | | | car will probably cost more, so even at a lower |
| process of buying a great used car if you follow a | | | | interest rate your payments could be higher than the |
| few simple steps and stick to your guns. Would it | | | | payments on a less expensive older model at a |
| surprise you that your first stop should be your | | | | slightly higher interest rate. Of course, your individual |
| credit union? Well, it should be.You need to know | | | | credit-worthiness will impact the loan rate you are |
| how much car you can afford, and what the terms | | | | quoted, as with any other financial product. Be sure |
| will be before you go car shopping. When you talk to | | | | you ask, too, if the credit union is sponsoring a used |
| your credit union, make sure you understand the | | | | car sale any time soon. These events can give you a |
| difference in rates, if any, between various car model | | | | great place to comparison shop for dozens and |
| years. Newer car loans are generally lower than the | | | | dozens of vehicles. |