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    Our Accurate Cars Blog is here to inform our customers about our Honda and Acura Used Car business and our Honda and Acura Car Repair business. This is where any visitor to the Accurate Blog can ask questions and respond to any Blog entry. Thank you for visiting and we look forward to hearing from you.

Financing that first Used Car, What Should I Do?

“I want to buy something with cash.  I do not want to finance a vehicle for my teenager”, was the statement that a caring mother said about obtaining a vehicle for her soon-to-be 16 year old daughter. When she said this, I nodded in agreement….but not total agreement

I applaud consumers that are dedicated to keeping their finances low and especially parents that do not want to enslave their teenagers to the burden of a heavy car debt; but I would like to share some information that parents may not think about, and may want to consider.

First of all;  who wants to buy a car, just to spend the money?   No one does,  but in many car buying situations, this is exactly what ends up happeningA maximum price or budget is set and when a good vehicle is not obtainable in that price range, instead of increasing the budget by 25%, a different brand or type of vehicle is purchased that is far inferior to the original goal of obtaining a good quality, used car.  This particular parent had $5000 to spend on a vehicle and let’s face it; $5000 does not go very far in the purchase of a good quality, used car. Sure, you can find plenty used cars that are priced below $5K, but most of them need mechanical work that you may or may not know about when you buy it. In addition to the requirement of  additional funds for undisclosed repairs and maintenance needs, you must also consider that 7% to 10% of that car budget is going to evaporate in the form of applicable state & county sales tax, and registration. In all reality, there are good quality used cars that can usually be purchased between  $7,000 to $10,000; but with the added 10% for taxes and unanticipated car needs,  who has $11,000 in cash just sitting in their bank account?

Consider the opportunity and start building a credit reference. I am not advocating or recommending that a parent “strap” their soon-to-be young adult to a brand new car loan. Most of today’s parents with teenage drivers, grew up in the late 80s’ and early 90s’. During that time, interest rates were considerably higher than they are now. Today, you can obtain a used car loan, through a good credit union, not a bank but a CREDIT UNION for a very low interest rate and simple interest terms. One of the Nashville credit unions that we use, currently have interest rates as low as 3.75% for qualifying applicants….and that isn’t just for 2008 and 2009 model vehicles. Car credit is one of the best types of a personal credit reference. It does more for building credit than a cell phone contract or a credit card will ever do. If a parent co-signs with their soon-to-be young adult on a vehicle purchase, and that teenager pays on that loan for at least 24 months, it can build a pattern of personal responsibility and will also be a positive reference on their credit score. But it needs to be a loan that lasts for a minimum of 24 months with payments that are paid on time (without an early pay-off),  to be viewed as a good credit reference.

Consider this scenario.At 18 years old, a young adult purchases a used Honda or Acura car, at a reasonable price and finances it through the local credit union. Because of the age of the car buyer and the lack of established credit, the parents co-sign for the vehicle.  Because the Honda / Acura vehicle is used, the initial depreciation hit has already been taken,  the value of this pre-owned vehicle has stabilized to a reasonable number and unless the price of the vehicle was inflated at the time of purchase;  the amount financed and what the vehicle is worth should be consistent. With the loan, the option of gap insurance is purchased (add about $350 to the purchase price ), which will ensure that if the vehicle is stolen or totalled-out before being paid off with the credit union; the gap insurance will cover any difference in what the vehicle is worth and what is owed to the credit union. Within 30 months of regular payments made, the credit reference of the 18-year-old, who is now 21 starts becoming very important, because they may be looking for a house or apartment to lease

This has “killed two birds with one stone”. It has kept a new driver from spending good money for an unreliable vehicle that could quickly have thousands of dollars added in unanticipated vehicle repairs.  It has also established credit for a new consumer.

Below,  I posted some of our current Honda and Acura inventory units that would be good first-time buyer vehicles:

1996 Honda Civic LX Sedan:  This vehicle is a perfect for the beginner driver. It has an automatic transmission, factory air conditioning, and it has been fully serviced by our Service Department. With no money down, a qualifying applicant could finance this vehicle for under $190 per month for 36 months.

Click on the link below for more information:



1998 Honda CRV LX 2WD:  This vehicle is another great deal. It has also been fully serviced by our own Service Department and is an excellent vehicle for the first-time-buyer. With no money down, qualifying buyers could enjoy this Honda CRV with payments under $250.00 for 48 months.

Click on the link below for more information:



2008 Honda Fit: This little Honda Fit is a great first car. It is still under factory warranty and with an automatic transmission, air conditioning,  and a very economical 4 cylinder engine; this one could last them through the college years. Qualifying buyers can purchase this 2008 Honda Fit for 60 payments under $280.00 per month.

Click on the link below:


 Come in and see why www.accuratecars.comis the best place in Nashville and Midde Tennessee to purchase and service your Honda and Acura vehicles. Always expect Certified Quality in our entire inventory of Honda and Acura vehicles.



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