Your Options for Financing a Used Car

YOUR OPTIONS FOR FINANCING A USED CAR FACTORS THAT IMPACT CAR LOAN OPTIONS 520 24 Your credit score How far back your credit history goes Any current outstanding debt SHORT-TERM LOANS AT A GLANCE Loan is paid off in between 12 and 36 months Helps you pay off the car quickly so MINE you own it outright sooner 12-36 May have lower interest rates than long-term loans, depending on your credit PROS CONS Can be a good option for those with either poor credit or good credit Monthly payments tend to be higher Can help someone with poor credit re-establish credit history May take some budget-juggling to make the loan work Car will retain more of its value in the short time it takes to pay off Lower overall cost of ownership because of less accrued interest LONG-TERM LOANS AT A GLANCE VROOM! Loan is paid off in between 36 and 84 months Can help you afford a car you might not otherwise be able to 36-48 Less need to adjust your normal spending budget to afford payments PROS CONS Lower monthly payments are more affordable Vehicle may lose more of its value by the end of the loan term Makes it easier to take care of unexpected expenses should they arise Higher overall cost of ownership since more interest is paid Good option for those who are unsure of their employment outlook Helps you own a car that would be out of your price range with a short-term loan INFOGRAPHIC PROVIDED BY: SUBARU 0F SOUTH ORLANDO SUBARU www.used cardealer orlando.com Sources: http://usnews.rankingsandreviews.com/cars-trucks/used-cars/Financing_a_Used_Car/ http://www.carsdirect.com/auto-loans/types-of-auto-loan-terms %24 %24