Used cars can be a great option for drivers. Not only are they more affordable than their newer counterparts, but they also offer plenty of the same styles and features that motorists want. Unfortunately, a recent study found that pre-owned vehicles may still be financially out of reach for many.
Used cars may be out of reach
The website iSeeCars.com gathered data from 25 million used car transactions in the 50 largest metro areas in the U.S. What it found was somewhat surprising: A typical used car sale is enough to leave the average American household financially overextended. For example, people in New Orleans spent about 140 percent more than what is ideal for their budget over the course of used car ownership, CNBC reported.
"The fact is, buying a used car or truck is just not realistic financially for millions of Americans," said iSeeCars.com CEO Phong Ly, as quoted by NBC News. "Low annual household income in some parts of the country is forcing people into car payments that are higher than they'd like, or for a term far longer than ideal, just to make them more affordable."
According to CNBC, the figures were calculated using the average transaction prices in a given region, as well as the typical down payments and monthly payments. Loans can certainly help drivers in the long run, but choosing an option with a longer term also means paying more interest. The trick is to find a solution that balances finances with the needs of the consumer – an act that can be tricky if you're not sure of the process.
Can you afford one?
Are you unsure about your ability to buy a used car? Never fear, as New Jersey State Auto Auction is here to help. In addition to having hundreds of used cars for sale, the facility boasts its own in-house financing team. These experts are well-equipped to find you the best auto loan or financing option possible, ensuring that you can drive off the lot with the car of your dreams.
NJ Auto's financing team is able to approve prospective shoppers for car loans and then help them decide which option is best for their specific situation. Not only does this clarify an otherwise confusing process, but it ensures that you're signing up for a plan you can afford.