Monday, June 28, 2010

Why when you try to have a car financed the bank will not allow you to get an older one??

I am looking for a Land Rover and I have the usual amount as the down payment, which is around a thousand. Is it possible for me to buy an older one ( 2002-2004 )??

From the banks point of view, they may need to repose the car and sell it off to recoup some of the loss (if you don't / can't pay).

But on used cars those resell values are much lower and so their losses are much higher

On used cars, you can often only get personal loan (meaning they can come directly after you for return of funds - instead of just coming after your car).

it's possible, the bank might not give you the super low interest rate tho, but see if you can utilize a credit union instead.

Banks will finance some used cars - the only reason they don't want to deal with it is value is much more subjective. If you buy a new car, they know it will be worth @65% in a year based on mileage if you flake on them ... (and they repossess) but a used car is hard to say because the price will vary so much - they just don't want to deal with it but look around - some people will do it especially now that the housing mkt is dead, they have to plow the money somewhere.

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