A sluggish economy and rising gas prices have led to an increased interest in used car loans. Instead of being strapped down by a long-term commitment to a new vehicle, many Americans have found more peace of mind in buying an automobile with some miles behind it.
According to ABC news affiliate WBAY, dealerships in Wisconsin are experiencing a shortage of used cars because the demand has been overwhelming in recent months. Bradley Bernt, owner of Auto Haus on Velp in Green Bay, told the media outlet that smaller, fuel-efficient vehicles are being scooped up quickly.
Bernt added that some savvy shoppers are applying for car loans to buy used autos, but they're not trading in their current vehicles. By utilizing car loan calculators, some folks have come to realize they can easily pay off a used car while keeping their gas-guzzlers off the road temporarily.
"The $5 gas isn't gonna last. Instead of trading in their vehicle that they need, they're purchasing another vehicle, like a $10,000 vehicle that you can finance 100 percent at $200 a month," Bernt told the news source.
A recent study by Consumer Reports suggests that individuals may be better off buying a used vehicle, especially cash-strapped shoppers who are applying for a bad credit car loan. The organization discovered that several 2008 models had the same or fewer problems that required maintenance than similar 2010 models.