Car Loan Values

The first question that comes to mind when you’re shopping for a car is whether you should buy a new car or a used one. Let’s face it. New cars cost a lot of money. Come to think of it, all cars, used or not, are expensive. And the cost of a set of wheels has become even more pronounced with today’s present economy. Many folks have grown nervous, leading them to decide that it makes a lot better sense to buy a used car over a new one.

When you buy a new car, you spend around $21,000 or more. This is big financial commitment, especially if your income falls in the middle of the income strata. And even at the best of times, it’s a huge leap. How much more when times are hard? Are you still willing to spend that much money on a car?

The Detroit-based Comerica Bank has compiled a report during the third quarter of 2003. According to

the Auto Affordability Index, it takes 19.9 weeks of median family income before taxes to buy a new car. This is roughly five month’s worth of salary spent on a car alone. Not a wise choice of spending your hard-earned money, certainly. Spending $21,000 on a car when the economy is slowing and the headlines are filled with job layoffs is not only unwise but foolhardy as well.

But fortune favors the brave, as the saying goes. Many car buyers like yourself who are willing to take the risk can find that there are many car loan value options offered to them. Strangely enough, car loan value in the market is flourishing in these hard times. In fact, million of cars come