Through the years, the buying and selling of new and used cars has been greatly influenced by the financial market of the world. There has been yet a uniform financial strategy in the financing of new and used cars. The field easily fluctuates and very volatile. There is a great difficulty in predicting the viability of financing cars, especially during this year. But in order to address this difficulty banks usually calculate the different factors that affect the car market.
These factors include the most basic of everyday resources, which is oil. Other factors also include the viability of payment or the rarity of the car in the market. But such factors only come into play when a person is willing to finance a new or used car.
The rates for this week
In order to fully appreciate the financial rates of new and used cars, the financial rate for January 23, 2014 must be taken into account.
- 4.24% for (60-month, new car) and 4.84% for (36-month, used car), these rates have slightly fell from last week’s rates. These rates serves as an indicator of what the upcoming financial rate would be like in the coming months.
- In addition, a 48-month used car loan fell from an average of 5.02 percent to an average of 5 percent. These are numbers that indicates that from the start of 2014 the financial rates of cars whether new or used have dropped.
What do the rates tell us?
The data coming from the financial rates are indication that financial institution has lowered the rates of loans for buying new and used cars. This in turn becomes good news for those who are planning to acquire a new or used car by financial loans. But taking into consideration the numbers that are current present, the most affordable and the most financially feasible way of owning a car for the 2014, is that to choose obtaining a used car through a financial loan. The reasons for such a conclusion are the following:
- Used car is by its very name cheaper than new cars. It is a second hand car so in order to acquire such car is considerably cheaper, this would mean the amount of money to be put up is smaller.
- The financial rate of these kinds of cars has declined in the weeks following the start of the year. If such rates would continue the rates would fall drastically making the acquisition of such car highly possible for those who are in a tight budget.
The pattern of declining rates is only possible if other variable in calculating financial loans does not change. But there are too many factors that would create a shift in the financial rates that it is nearly impossible to predict its conclusive trajectory.
The only certainty is that in order for motorist to enjoy the privilege of riding his vehicle he must gone through dsa driving test. Other than that, the motorist must continually observe the fluctuation of the financial rates. It is through observing that the potential buyer of a new or used car may be able to properly equip himself from the volatile financial loan rates of new and used cars.