Is buying a new car at 0% APR better than buying a used car at 3% APR?
Is financing a new or used car better? I don't know whether I should buy a new or used car. The dealer near me is offering 0% APR for new cars, but I also got approved for 3% APR on a used car.
Answer provided by
Answered on Jul 16, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“This is highly dependent on the price of the cars and your budget.
Think about it like this. If you buy a $25,000 new car with 0% APR for 60 months, your monthly payment is $417.
But if you buy a used car for $15,000 and 3% APR for 60 months, your monthly car note is $270.
So it’s all in the eye of the beholder. If you can get a quality vehicle for $15,000, why would you pay more? Is it for status? Or just a preference?
There’s no wrong answer, but making out a spreadsheet of your budget may help.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
How long will I have to keep my child on my insurance policy?
When can I remove my child from my insurance policy? I was forced to add my son to our insurance policy when he was 19 due to the bad accident he caused with the family car. This was three years ago and he is still making the cost of my insurance incredibly high!
Jul 12, 2021
Can dealerships lie to you about your credit score?
Do dealers lie about credit? I was buying a car and when the dealer pulled my credit score, they said it was 688. I know for a fact it's 707.
Jul 16, 2021
Do car dealerships always run your credit score?
"Do car dealerships always run your credit? I want to buy a car, but I'm also shopping around for a home. I don't want the financing for the car to cause a hard inquiry, which can lower my credit score and affect my mortgage rate."
Jul 14, 2021