Buying a car is going to be one of the most expensive decisions of your life. Choosing one should be done after a lot of thought and deliberation. When buying the costliest car is not an option and saving money is a priority, buying a used car can be a good idea for some. If you can not decide which to buy: a new car or an old car, read on.

There are many things to keep in mind before you decide what kind of car you want, a new one or a used one. Few people can afford to buy a car without a loan, so that is something that is of utmost importance. Which can give you the best deal, a new or used car loan?

1> New car loans will always get you a lower rate of interest than a used car loan. The main reason for this is because the lender of a used car loan always fears of default payments. In case of lenders of new car loan, the price of the car is more; as such the rate of interest is lower.

2> The down payment of a used car is usually more than that of a new car of the same category.

3> The Annual Percentage Rates of a used auto loan is higher than that of a new auto loan.

4> You must know that a bad credit score will get you a higher rate of interest, right? Well, if you are in the market for a used car with bad credit, the rate of interest for your loan may just be higher. Lenders consider people with bad credit a huge risk and hence try to cover them by charging a high interest. This goes up further in case of used cars.

5> Your dream car may be too pricey for you to even consider buying it. But the same car that has been used for a year will cost you a lot less. You can have the car and yet not burn a hole in your pocket!

6> It is difficult to get financing for a car that is more than 5 years old. Getting a loan for a new car is easy.

Though buying a new car will always get you a better deal from the lenders than a used car, if money is short, buying a used car is probably a good idea. Following are a few tips you may need to get a used car loan.

1> First of all you should find out your credit score. Find out where you stand before you start looking.

2> There are many online auto lenders who are willing to give used car financing. Browsing online is therefore a good idea.

3> Negotiate well for as low an interest rate as possible.

4> Keep away from the middlemen. Strike a deal with the company itself. It will help you get a better deal for a used car loan.

A lot of people want to know whether it is true that getting a car loan is easier with No Credit than Bad Credit. First of all what exactly is a No Credit and Bad Credit loan? A Bad Credit implies poor credit rating of a person. It may happen for making late payments, exceeding card limits, skipping payments and declaring bankruptcy. On the other hand, a No Credit implies a person with no credit history as is the case with young college graduates who have never taken a loan. The negative effects of a Bad Credit become apparent when a person wants to take a Bad Credit Car Loan.

>> The interest payments of a Bad Credit Car Loan are higher than a normal one. This is because interest rates depend on the persons credibility and since a person already has a history of defaulting payments, the lender has risks which are covered by imposing a higher interest rate.

>> A Bad Credit Car Loan means that the person has a history of debt. The higher a person debt to income ratio is, the greater the chance of his defaulting will be.

>> A person taking a Bad Credit Car Loan cannot declare bankruptcy to write off the loan as in the case of credit card payments and other unsecured loans.

>> A bad credit auto financing is made available to people who have made late or missed payments. But it is much more expensive than a no credit auto loan. It is also tougher to get as lenders fear of default payments. Here are a few things you need to remember if you are in the market for a No Credit Car Loan.

>> Do open a savings and checking account. This will prove to lenders that you are responsible and you have not overdrawn.

>> Get a credit card for yourself and make sure you pay up. Department and gas store cards are easy to get and doing this you can have a credit history. A deposit will enable you to get a secured credit card. Make sure that your credit cards are reported to the Credit Bureau.

>> Make sure you can show a steady background to your potential lenders. Things like a permanent residential address, employment proof and a phone number in your name are necessary.

>> Getting a no credit car loan is not easy, nor is it too difficult. Follow the steps below to improve your chances of being considered for a loan.

>> Open a saving account and cell phone account in your name.

>> The place you work at should give you a statement about your eligibility for an auto loan.

>> Find someone with a good credit rating to cosign with you for the loan.

>>When you do get your no credit auto loan, make sure that you make timely payments. This will increase your credit rating and make it easier for you to get more loans in the future.