Buying NEW or USED? Credit Issues Yes, No, Maybe OK Lets Talk

The types of consumer loans available in the auto motive market are incredibly diverse. The options available today can be confusing from the prime to sub-prime plus with new vehicle dealer offering manufacture incentives from low rates, flexible terms, packages and cash incentives. The question if often ask what is the best way to pay for a vehicle? Lets review some of the options as it relates to traditional options out there on the market today. 


Why Fiance a new vehicle over used?

Lets take a look at to days market, the vehicle purchasing costs have become very competitive and the spread between that one year old used vehicle over new has become increasingly smaller especially with segments in demand. Incentives provided by the manufacture like flexible term easy of approval and lower than posted bank rates traditionally 3-4% point advantage as low as O% with conditions to review. If you can keep the new vehicle cost with in reason as most used vehicle finance rates range from 5-12% for clients with reasonable credit history or up to mid twenties for "sub-prime" for clients with past issues or limited experience your first time buyer. Add to your used vehicle price the purchase of extended warranty it is a great idea to reduce risks associated with potential mechanical issues. With out warranty the true cost of ownership could be much higher. The ability to build or select an affordable new vehicle platform factor in finance terms that a lower from the manufacture plus incentive with factory warranties included it can get you to a monthly or bi-wkly payment that can be very close to that 1-2 year old vehicle. Other factors related to a new vehicle it will have a clean history as you are starting fresh no past issues to watch for like hidden liens, branding from theft recovery, salvage, rebuild, weather damage like flood or hail, past vehicle care and service will never be in question.  Bennett GM

Why buy a used vehicle

Yes the use car market can be the answers to many buyers needs and lets face it we all can not afford a new car purchase. But the level of risk can be higher for potential problem finding that balancing with the rewards of a pre-loved vehicle can be tough. First things first understand the affordability of what you want to spend and to find out the true cost of ownership. Will parts and service be affordable and what will need to be replace in the near future. Keep in mind that the basic power-train warranty on an older vehicle does not cover wearable parts like tires, brakes, belts, battery and more. You may need to set a side some money to cover the cost the Lemon Aid Guide is a good reference for yearly operational costs. You may need to find out some basic details to help you shop for the best financing as lenders have requirements relating to your vehicle selection. To give you an idea some lenders have to adjust terms based on the vehicle year or Kilometer's that can reflect in higher payments. The group of lenders out there today work together using a credit reporting service so personal finance history has to be factored. The cost to fiance should be a reviewed that is why more dealer are pushing the Pre-application process mimicking the mortgage industry.  The key is to finding the right vehicle, if done right it can provide amazing value and provide years of trouble free driving.  Scherer Chevrolet Buick GMC

EASY CREDIT: High Rate+Low Price? Look closer

In House Financing, Credit Services or buy here and pay here are other areas of the finance market place that you will see at some of the dealer lots. Usually geared to older vehicles and captive clients that can't qualify for traditional lenders is it bad? Well no, maybe, sort of, sometimes it's depends on the deal and the position you are in. You may just need a car today with no questions asked but be prepared to pay a higher interest (up to 29.9%), the loan maybe closed, and the vehicle is usually priced higher than true market value. Security down is usually needed. This style of buying and selling is getting more common with the changing economical climate. It is not that out of the ordinary to find older trades with financing owing using that in house financing as a credit starting point. The key is not to get in to deep financially and find the vehicle that will just cover you until your credit is improved a year or two and keep your payment schedule so you can qualify for a standard loan down the road.  Yes it can work but watch the details is it a lease or true financing what if you are late or miss a payment it can happens will there be crazy fees or will you have to return the vehicle?   


What to do? 

When it is all said and done it's easy. Schedule an appointment to sit down so we can talk and review all the options. Let me work with you to find financing that fits plus get you a great deal on the vehicle works with your life style.


Keith Sills
Sales+Leasing Consultant 
Bennett GM 
*Serving Cambridge Since 1931
Phone 519-623-1250   

link to on line credit application lets get started *Remember to ask for Keith Sills