Question: What Is The Best 10 Year Old Car To Buy?

Can I finance a 10 year old car?

Question: What Is The Best 10 Year Old Car To Buy?

Yes, it is possible to finance a car that is 10 years old, but it will not be through a national bank.

If the car is at a dealership, they will know this and try to convince you to use their in-house financing.

Avoid it if you can!

They interest rates are quite high, even if your credit is good.

Can I get a better deal on a car if I pay cash?

The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest. After all, with a cash deal, you pay exactly the price shown and no more. If you want to spend your cash, that’s great: It means you won’t have a payment or another care about the car’s financing.

How much should you spend on your first car?

The frugal rule: 10% of income. For many people I think that will be between 10–15 percent of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000.

Should you put a large down payment on a car?

The generally advisable percentage to put down on your new car purchase is much like the recommended down payment on a home—20%, if you can afford it. Used cars require less—10% or more.

Photo in the article by “Flickr” https://www.flickr.com/photos/pedrosimoes7/5044532183