Car Loans, Leasing and Buying

How do loans for used cars work?

They work in a similar fashion to purchasing a new car. Finance companies will require that the loan be of a certain minimum, say $20,000. They also will have similar terms for the payback period of the loan, but about 1% higher than a new car loan. They also limit how old the car can be for financing. The car should be not older than seven years old.


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