Advantages of Using a Used Car Loan

posted in: Auto Loans, Financial Tips 0

As we enter the New Year, many people are interested in new opportunities. For some, this means purchasing a new vehicle. WithAdvantages of Using a Used Car Loan rising inflation and sky-high car prices, investing in a new vehicle can be a  commitment not everyone can make. As the auto-making industry continues to advance engineering and manufacturing, cars can  last significantly longer while requiring minimal maintenance. 

Ultimately, taking out a used car loan with a respected credit union like Camino can be  a great way to responsibly finance a reliable vehicle that will carry you to a brighter financial future in the new year. Learn the advantages of used car financing in our blog:

A Used Car Loan Builds Credit

One  advantage of using a used car loan from a respected credit union like Camino to purchase a car is that it can help borrowers build credit. 

For people who take out these loans, , and make their payments on time, this is an excellent way to establish, build, or repair credit for most customers. A strong payment history can be an important aspect of a good credit score.

The flexible terms and lower payments can make it significantly easier to stay on top of payment deadlines to show future creditors and landlords that you take your financial obligations seriously.

A Used Car Loan Enables Ownership

When considering getting a new set of wheels, many people can approach a crossroads: Should you lease or own? 

While leasing can be less of a long-term commitment, a advantage of taking out a used car loan with a reputable credit union like Camino is that it enables you to own your vehicle. Leasing can come  with miles restrictions and can be  often more expensive long-term when you consider things like increased insurance premiums. 

A used vehicle loan, can be cheaper and more flexible than a new car loan, which means that payments could be lower. 

Ultimately, ownership can be of a commitment but considerably cheaper in the long run. Not everyone can manage payments on a brand-new car, and a used car loan enables borrowers to enjoy the advantages of ownership responsibly. 

If you have your heart set on a luxury vehicle, you can find an affordable older model you can proudly own. 

A Used Car Loan Is Easier to Manage

A benefit of using a used car loan to purchase a used vehicle is that the loan can be much easier to manage in a few different ways. 

.Used car payments and terms can be  easier to manage for borrowers, which can be an advantage that can equate to saving hundreds each month. 

Interest rates on used auto loans can  also be lower, and these loans often come with flexible terms and a more manageable payment plan. Plus, there are hidden savings that make used car financing more manageable.

For example, the value of your car dictates the rate of your annual registration fee, meaning you could n save money each year due to this purchase, and used cars typically come with lower insurance and dealership fees. 

Call Camino for a Used Car Loan That Will Put You Back in the Driver’s Seat of Your Finances

A new car can be a sizable expense and investment, and not everyone is in the financial position to responsibly purchase one. While leasing is one alternative, ownership can offer  significantly more benefits and can even help build or repair credit. If, for you, a new year means new wheels, taking out a used car loan can be a , great, and  manageable option. 

Fortunately, when you work with a reputable credit union like Camino, you receive flexible terms, great rates, and attentive, local service. To learn more, visit us at, call us at 800-835-3400 to speak with a Member Advisor, or contact us for more information.