Hi

I am in market for buying car. I m open for used or new one. but while lookng at finance terms, I found that interest rate for used car is around 7-8% (from dealer) while for new car its between 0-1%.

Is this correct or I m missing something?

U r correct ..
Another option is take LOC on better terms and pay for your previously owned car .

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Growing Old Is Mandatory ..Growing UP is Optional

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Originally posted by AshwaniG

U r correct ..
Another option is take LOC on better terms and pay for your previously used car .

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Quote:

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Originally posted by desi28
Thanks Ashwani, what is LOC?

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

I would suggest go for honda civic or toyota or nissan 2010 . The current offer is 0% for 60 months.

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Clinton

LOC = Line of credit as Pratik mentioned
Previously owned = term used here in Canada for Second hand

Quote:

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Originally posted by desi28

Quote:

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Originally posted by AshwaniG

U r correct ..
Another option is take LOC on better terms and pay for your previously used car .

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Thanks Ashwani, what is LOC? Between, this is my first car here.

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Growing Old Is Mandatory ..Growing UP is Optional

desi28, you have to consider all factors when choosing between used car vs new car.
It is not just the interest rate.
Insurance is higher for new cars.
Also, since a new car will cost more than a used car, you have to calculate whether you can pay off the new car during the 0% interest rate period.
If you can't, then the interest rate will jump high after that.

On the other hand, maintenance is lower on a new car (usually).

Consider all factors before deciding.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"