Can I finance a 10 year old car?
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”