Prefer Used Cars with Car Credit

Nov. 17, 2010 - PRLog -- When it comes to bad credit borrowing, the large number of lender options and dealership offers make it easier to get approved from almost anywhere quite easily. But even with all of this competition, chances are that the interest rate on the car credit (http://www.nationscarcredit.com) would be high and it would be quite difficult to pay back over the term of the loan. There is one way in which the effect of the interest rate can be minimized and that is through going for lower loan amount on car credit. The borrower ends up saving a lot of money on the amount as well as the interest and the following lines give an example of how it’s possible.

A new car wouldn’t come cheaper than 10000 dollars or even more. Let the loan term be equal to three years and the interest charged due to low credit score be 15 percent. This means that the borrower has to pay 1500 dollars every year for three years plus the loan amount. This means that he/she has t pay back 14500 dollars or 4800 dollars every year for the next three years. Now, the price of a used car is less and it can be acquired easily for 5000 dollars. Let the loan term and the interest be same albeit one can get a reduced rate because of the low amount. The car credit borrower has to pay back 750 dollars a year on interest for three years plus loan amount. The total money to be paid back after three years comes out to be 7250 dollars or 2750 dollars a month.

Hence, by going for a used car, the applicant gets to save almost two thousand dollars every year for the whole term of car credit (http://www.nationscarcredit.com). This means that the installments are going to be very easy ahead.

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Nations Car Credit is your best source for car credit or bad car credit loans online. More information about Nations Car Credit can be found at http://www.nationscarcredit.com.