New vs used car financing: What's the difference?
There are many considerations when purchasing a vehicle, but one that no doubt each consumer puts considerable thought into is whether to buy new or used. There are pros and cons to each, but are there any actual differences when it comes to vehicle finance when we look at new versus used? If you are looking to buy a new or used car but need to sell your current car, AutoTrader can get you an Instant Offer!
Let's have a look at the pros and cons of financing a new and used vehicle to decipher the key differences.
New
Pros
- Favourable interest rates
- The potential to get special deals with lower interest rates or discounts from the vehicle price
- A deposit might not be required
Cons
- The initial cost of the car may be higher
Used
Pros
- The initial cost price is generally lower
Cons
- Higher interest rate
- The car may be subject to a pre-sale inspection
- A deposit may be required
