Question: I've always bought new cars in the past but I want something less expensive this time. If I purchase a used car, will the credit requirements be the same? What about financing options- do they change based on buying a used vs. new car? Bob T.

Answer: Buying a used car has its advantages and disadvantages. The most important thing is research; look at gas mileage, repair costs, value/depreciation, etc.- all of the same things you would do for a new car. Once you've decided what type of auto you want, you have many options for purchasing the vehicle. You can find a private seller, go to a dealership, or use an auto broker (you can get referrals from your bank or credit union). According to the Federal Trade Commission, annual percentage rates usually are higher and loan periods generally are shorter on used cars than on new ones. Before taking out a loan for your used car, be sure that the car will meet your needs for the entire length of the loan.

Before financing a used car it is a good idea to run a Vehicle History Report and have a certified mechanic inspect the car. Most dealers and auto brokers offer both of these services. In addition, investigate an extended warranty or mechanical repair coverage. Many used cars are no longer under the manufacturer's warranty. Extended warranties and repair coverage plans can give you added protection with your older car.

Kelly Eargle is an auto financing expert with the Credit Union of Colorado, which has a local Thornton branch. Email your question to EargleK@cuofco.org. Not all questions will result in publication.