Before You Get A Used Car Loan you should read this
Let the Internet be your guide when buying a used car. The information you can find online is valuable and just a few clicks away from your fingertips. You can find out what a used car of any make or model might be worth if you were trading it in, selling it yourself, or buying it from another private owner or car lot.
Before you take out a car loan, go online to see what the used car you want to buy is really worth. Besides the fact that you don’t want to pay too much for the automobile, you also don’t want to take out a bigger car loan than is necessary.
"Trade-in value" is explained as, "What consumers can expect to receive from a dealer for a trade-in vehicle," and "private party value" is explained as, "what a buyer can expect to pay when buying a used car from a private party." But when it comes to "suggested retail value" KBB switches gears and defines it as, "representative of dealers' asking prices and is the starting point for negotiation between a consumer and a dealer." - advertisement -
Now, be careful. You have to check more than one source, because the web has many websites that have their own opinion about used cars and about car loans. Depending on the website, the values for some cars can vary by more than a thousand dollars for what seems like the same type of car in the same condition.
Most free websites that say they can help you find out the worth of a used car or that claim to help you get an auto loan, usually have a close relationship with auto dealers and car loan companies that support their website through advertising or other means. That relationship with their supporters can make the information less reliable.
Two popular websites for information about used car values are Kelley Blue Book and Edmunds. They are the most reliable sources I’ve found for information about the value of a used car. For information about car loans, go to http://allaboutcarloans.com after you know how much you will need to borrow for that dream car you just researched.
First, let’s determine what the car you want to buy is worth. There are a lot of things that go into a used car's value, including regional differences, supply and demand and what's happening in the new car market. Run through the calculator on Edmunds, and see what the result is for the car you want to buy. Then check the same car at Kelley Blue Book. You’ll likely see two different values for the automobile you checked.
Why? Each of the two websites have a different means of calculating the value of automobiles. The prices that are calculated at the websites also use different sources for information about used cars. It seems that Edmunds.com uses a little forecasting to determine actual value of a used car, while kbb.com or Kelley Blue Book gives you a suggested retail price as a guide for car dealers.
Newer cars are easier for these websites to compare and you’ll find less differences in the price comparisons. The older the car is, the more likely they will be different estimates. None of these estimates should be taken as 100% accurate, but using both of these sources will help you define a range.
So what do I do? First remember, no two used cars are alike and no two auto loans are alike.
Also, it should be noted that using the higher estimated value when applying for your auto loan and using the lower estimated value to negotiate the purchase of your vehicle can be a plus. When you go to http://allaboutcarloans.com make sure you look for topics that will help you in determining the best places to apply for your auto loan and use the higher estimated value when applying.