You deserve a safe and reliable vehicle within your price range, and that’s why Honda Van Nuys is a great place to find your next used car. Our extensive inventory of vehicles, affordable pricing, and Honda financing make it easy to find the car you need and stay within your budget. We can also help with common questions – including why used car financing may be more expensive.
Used Honda Financing: Is it More Costly?
Used cars are less expensive, but a used car loan may have a higher interest rate than a new car loan. So why is that?
The short answer? You’re investing in the car, but so is your lender. Their calculus is a bit different than yours, however. They’re looking at depreciated value, repairs, and other issues that can factor in if you miss payments.
How Do I Offset Higher Interest Rates?
The good news is that there are still ways to save when purchasing a pre-owned vehicle, even if the interest rate is slightly higher.
- The higher the down payment you pay on the day of purchase, the less you’ll pay in interest costs on your vehicle.
- You can always start by paying your vehicle off more quickly, which means you pay less interest over time.
- You can also trade in your current model, saving you money on the down payment and sales taxes.
Learn About Honda Financing at Honda Van Nuys
It is essential to keep this in perspective. While the interest rates may be slightly higher, you’re spending less for the vehicle, borrowing less money, and therefore generally paying less over the life of the loan. So if you’re in the market for a Honda used car, don’t hesitate to finance at Honda Van Nuys today.
