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You will want to be careful however that this type of loan will not put your home ownership in jeopardy. When making the decision to purchase other a new car or a used one, you should be aware that interest rates for new cars are usually lower than for used cars. Auto loans for new cars also have the added benefit of offering longer terms. This is why going for a new car instead of a used one may actually be a better alternative if you want to save some money in the long run. Keep in mind that the costs of auto loans will not necessarily remain constant for the duration of the loan term.