financing a used car

Here is a detailed post about Financing A Used Car. Suppose you are looking for lowest used car loan rates. Then reading this article may help. It also includes how to finance a used car with no credit.

Buying a used car can be a bit overwhelming – especially if this is your first time on the market. Shopping for a used car is a very involved process, and requires a good amount of decision-making if you’re looking to secure a great deal on a fantastic used car.

lowest used car loan rates

Financing A Used Car

A unique aspect of shopping for a used car is financing. Because the cost of a used car is significantly lower than a new car, it’s often possible to purchase a car outright with cash – avoiding long financing terms, and potentially saving you some money.

This is quite rare when purchasing a new car, due to the high cost of a brand-new automobile. And while most used car shoppers do end up financing their cars, you may be tempted to drop some cash outright – and pick up a great used car without worrying about repayment.

But how can you decide if financing a used car is right for you – or if you’d be better off paying in cash? Well, we’re here to make things easier for you. Our list of the pros and cons of financing a used vehicle will certainly help you as you make your decision.

The Pros Of Financing A Used Car

Financing a used car is the most common method of purchase – for good reason. There are quite a few benefits of taking out a loan to buy a used car. Let’s take a look at them now.

  • Low Down Payment And Up-Front Cost – Most used cars can be purchased with a very low down payment – often only 10%-20% of the value of the car. You can even get a 0% down payment in some cases – though this will lead to an overall higher lifetime cost of financing your vehicle.
  • Reasonable APRs – No matter what your credit rating is, it’s easy to secure a reasonable APR on a used car. Even people with bad credit can generally get reasonable terms when financing a car loan, because banks can simply repossess the car in case of non-payment – vastly reducing their risk.
  • Helps Build Your Credit Rating – An auto loan is a great way to build your credit rating – especially if you’re trying to recover from a negative hit to your credit rating due to bankruptcy or outstanding bills.
  • Allows You To Keep Your Savings – Blowing your savings on a large cash purchase is often a bad idea – even if it is a car. Life happens – and if you spend all your savings on purchasing a car outright, you may be out of luck if you happen to need a quick injection of cash in the future. By financing your car, you can keep your savings intact – and have money to pay for unexpected situations or emergencies.
  • You Can Afford To Buy A Better Car – This point shouldn’t be overlooked. If you pay in cash, you’re restricted to a much smaller budget – and you can’t exceed it. However, if you finance a car, you can often afford to buy a better car, because you don’t have to pay for the whole thing at once. This doesn’t mean that you should buy a Porsche when you can only afford a Corolla – but it does that, if you finance your purchase, you could get a higher quality car that’s a few model years newer, or has some more modern, nice-to-have features.

The Cons Of Financing A Used Car

Of course, there are some drawbacks to financing – as compared to paying cash. Let’s take a look at a few of those drawbacks, so that you can get the full picture of the benefits – and disadvantages – of financing a used car.

  • Higher Overall Cost – When you finance a car, you’ll pay more for it than you would if you purchased it outright – that’s just a fact. The interest you pay on your loan adds up – so financing a car will almost always lead to a higher overall cost, as compared to a cash-only purchase.
  • Less Negotiation Leverage – When you finance a car, you don’t have too much negotiation leverage. You may be able to cut a deal here and there, but you’re likely bound to whatever the dealer offers you. Cash payments, on the other hand, are very attractive to dealerships. Dealers know they’ll get immediate profit with minimum paperwork – and may be willing to negotiate a better price in order to get rid of a car quickly.
  • You Don’t Own Your Car Until You Pay It Off  – When you finance a car, you don’t own your car until you pay it off – until then, the issuing lender holds the title, and can repossess your car if you don’t make payments. If you make all of your payments on time, this isn’t a problem – but it can be attractive to just pay cash for a car, and own the title yourself immediately, so that’s certainly a factor to consider.

how to finance a used car with no credit

So What’s Right For Me?

Well, the answer is “it depends”. The choice of whether or not to finance a used car depends on your credit, your savings, your financial situation, your income – and a variety of other factors. Without knowing the specifics, it’s hard to give a recommendation.

However, there’s a reason that financing the purchase of a car is so common – it’s easy to get a solid rate on a loan, it leads to a lower upfront cost, and provides you with a way to get a great car without blowing through your savings.

High quality used car dealerships like Ride Time offer competitive lending rates for people with bad credit and good credit alike. Even if you have bad credit, Ride Time can guarantee you a reasonable financing deal on a used car if you have a valid Canadian driver’s licence, a take-home income of $1,500/month before deductions, and have been employed for more than 3 months.

So think about the pros and cons of financing a used car before you make your next car purchase. Whether you decide to finance your car or pay up front with cash, we’re sure you’ll make the right decision – and that this guide will help you!

What is a smartphone?

illustration of a smartphone

A smartphone is a more powerful version of a regular cell phone. In addition to the same basic features, including phone calls, voicemail, and text messaging, smartphones can connect to the Internet over a cellular network. This means you can use a smartphone for the same things you would normally do on a computer, such as checking your email, browsing online, or shopping.

Wireless providers will require you to pay a monthly fee, usually called a data plan, to access the Internet with a smartphone over their cellular network.

Most smartphones use a touch-sensitive screen,meaning there isn’t a physical keyboard on the device. Instead, you’ll type on a virtual keyboard and use your fingers to interact with the display. Other standard features include a high-quality digital camera and the ability to play digital music and video files. For many users, a smartphone can actually replace things like an old laptop, digital music player, and digital camera in the same device.

Do I even need a smartphone?

woman looking at a smartphone advertisement

Because of these convenient features, smartphones have become increasingly popular over the past several years. Smartphones can also be very expensive, however; some high-end models cost even more than a new laptop or desktop computer!

If you’re happy using your existing devices separately, you may not need a smartphone. But if you want to use just one device to access the Internet, make phone calls, take photos, and listen to music, a smartphone is probably a good option for you.

What type of smartphone should I buy?

illustration of different smartphone types

Even if you know you want a smartphone, it can be challenging to know where to start. There are different smartphones to choose from, including Windows Phone and Blackberry. In this guide, however, we’ll focus on the two most popular options: the iPhone and Androidsmartphones.

There are advantages and disadvantages to both, so we’ll try our best to provide the information you’ll need to make the decision that’s right for you.

What is an iPhone?

The iPhone is a smartphone from Apple, which also produces the Mac line of computers. The iPhone is available in a few different models, starting at $450 and going up to $950. It’s powered by the iOS operating system, which is also used by Apple’s iPad and iPod Touch devices.

What is Android?

Unlike the iPhone, which is only available in a few different models, there are hundreds of Android devices to choose from. This is because Android is not one specific smartphone. It’s actually an operating system designed by Google. Many different companies make devices that are powered by the Android operating system, including Samsung, HTC, LG, and Motorola.

Each of these manufacturers produces different Android smartphones, each with their own custom hardware and features. As a result, Android smartphones are available in a much wider range of prices than the iPhone, starting as low as $100 for an entry-level device.

Android or iPhone?

Should you get iPhone or an Android? If you try searching for advice on this topic, you’ll find no shortage of opinions on both sides; iPhones and Android phones have strong groups of supporters, and most people place themselves firmly on one side or another. There are definite advantages and disadvantages with either option, so let’s take a look at some of the biggest factors you should consider.

Click the buttons in the chart to see our rankings, then read more about each category below.


illustration of a cellphone with dollar signs

In terms of cost, the iPhone simply can’t compete with Android models. If you don’t want to spend more than $200 to $300 on a smartphone, you’ll want to choose Android over iPhone.

Unfortunately, the actual cost of a smartphone may not be immediately obvious. For example, your wireless carrier may offer certain smartphones for freeif you sign a two-year contract, or allow you to spread the cost across small installments instead of one single payment. Regardless of how you pay, an iPhone will almost always be more expensive than an Android smartphone.

Winner: Android


Because the iPhone is produced by one company instead of several manufacturers, it’s often easier to get answers and help directly from Apple’s customer support. By contrast, most Android phones work a bit differently from one another depending on the manufacturer and wireless provider you choose, which can make it more difficult to know where to look for help.

If you’re worried that you’ll need a lot of extra help once you get started, you might consider choosing an iPhone over an Android (if your budget allows).

Winner: iPhone

Apps and app stores

Both iPhone and Android allow you to download applications, which are commonly known as apps, to add extra functionality to your smartphone. The Play Store for Android and the App Store for iPhone provide a huge selection of apps for you to download. Although some apps are available exclusively for one platform, most are available on both. Unless there’s a specific app you want that’s only available on one device, this shouldn’t be a significant factor in your decision.

However, if you already have another device that uses Android or iOS, such as a tablet computer, you might want to consider purchasing a smartphone that runs the same operating system. This way, you’ll be able to install any apps you’ve purchased on both devices.

Winner: Tie


illustration of an accessorized cell phone

Android smartphones allow for a lot more customization than iPhones. Whereas the iPhone offers a few customization options (like your phone’s wallpaper and ringtone), Android allows you to change just about everything on your device, including themes, notification widgets, and default applications.

For some users, this might not be a very important distinction. But if you want to have more control over the way you’ll use your device, we’d recommend choosing an Android over an iPhone.

Winner: Android

System updates

Remember how we said before that Android and iPhone use different operating systems? Like desktop and laptop computers, these operating systems are updated just about every year. These updates usually include new and useful features, as well as security upgrades.

But upgrading an Android phone to the latest version can be pretty complicated. In many cases, it actually depends on when your wireless provider decides to push the update to your device. By contrast, the iPhone can be updated as soon as updates are available, regardless of your wireless carrier.

We should note that there’s nothing especially bad or dangerous about using a slightly older version of your phone’s operating system. But if you know that you always like to use the latest software as soon as it’s available, you might consider choosing an iPhone over an Android (if your budget allows).

Winner: iPhone

There are a few Android models, like the Google Nexus, that allow you to upgrade to the latest version of Android more easily; however, they also tend to be more expensive than other Android smartphones.

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