Overhaulin'

If you buy a car used from an individual or dealership, can you get monthly payments for it?

Hello, I am young and have had no experience buying used cars, I was wondering, if you buy a used car from an individual, do you have to pay it all up front or can you pay in monthly payments? If you buy a used car from a dealer can you pay in monthly payments or do you still have to buy it up front? I am asking because I cannot just plop down 15 grand or so then and there. Thanks!

Public Comments

1. Individuals do not finance cars. Dealer financing is generally very expensive and is still through a bank. Go to your back and see if they will pre-qualify you for a car loan. If they will not, then if you go to a dealer, you will pay through the nose for it. You are better to set your sights a little lower and pay cash. For example, I just bought a great 2005 Chevy Cavalier with 58,000 miles for my daughter for $5995 cash. I got a 2004 Focus for myself with 51,000 miles for $4600 last month.
2. Hi, the majority of people (about 95% or so) finance their cars. Basically no-one pays cash for their car, because most cars cost above $20,000. It is better to buy a car new, than to buy a used car. You will get a lower interest rate, and newer cars usually never have many problems occur within the first three to five years. I would highly recommend buying the car of your choice from the company dealership, like only buy a toyota from a toyota dealership. The recommended down payment is 1/3 of the car, but $3,000 is a good downpayment. The higher down payment you pay, the lower your monthly payment will be. To get an idea for the car you can afford, your monthly payment will be about $25 for every $1,000 the car costs. So for a $17,000 car, your monthly payment will be about $425. Make sure to research the car before going to the dealership, and test driving it before buying. I highly recommend Nissan, Toyota, Honda, Acura, BMW, Lexus. You can also save some money buy buying certified preowned from the dealership. These are used cars the dealership has bought and has reconditioned to like new condition, and sold as new with full warranties. Also, just as a side note, when you purchase the car, they will bombard with you with buying gap insurance, extended warranties, extra clear coat, etc. All of this stuff is just to get you to pay more money, don't buy any of it, it's all just fluff. Good luck!
3. Actually, the monthly payments are made to a bank in either case. That's what really happens when you finance a car - the bank sets up the payments. It really doesn't make much difference whether you buy from a dealer or not. Neither dealers nor individuals should be taking payments. People do it, but it's not a good idea.