Every used car purchase can be a time of great excitement for a buyer. That used car that you have been searching the used car listings for months to find is now yours, and it’s time to finalize the sale. There are even some added bonuses that everyone looks forward to with used car purchases – no payments on that used car until next year!

However, many used car buyers fail to realize that their “no payment” used car may not be exactly what they thought it was when they first got into negotiations with the seller on price and agreed on their terms. What some sellers do is tack used car financing or personal loans on top of your original agreement so “no payments” becomes only until the first monthly bill arrives in the mail.

While used car loans are pretty standard in most used car purchases, it is important to realize that used car buying can be a major expense even when you are getting no payments. Used cars come with used car tax deductions, insurance rates, and maintenance costs that will continue long after your original used car loan has gone into effect if the vehicle requires any significant repairs.

These used car financing options are especially important for used car buyers because of their impact on credit scores. The more debt taken out at once means the more used car interest rates tend to increase, which means higher monthly payments or less value in your trade-in later on down the road.

Some borrowers will find that personal loan lenders offer the best opportunities to secure a new car as they require less paperwork and allow a borrower to become a cash buyer more quickly.

However, used car buyers should beware of used car loans that have higher monthly payments than expected. Terms can always be changed between used car loans and used car dealerships.

Used cars are still used even if you don’t have to make payments on them for a year or two. Make sure that your used car financing matches the value of your used car purchase so that you won’t find yourself paying for more than what your used car is really worth in the long run. For more information on buying a used car, contact local used car dealerships today!