Market used car prices fluctuate based on several factors such as market demand for the used vehicle, time of year, location in the USA, and gasoline prices at the pump. Used car finance values which financial institution use to estimate the value of the vehicle and base the amount of the loan on remain fairly consistent when compared to the same factors mentioned above.
So what effect does this have on the average used car buyer that needs to finance their vehicle purchase? Quite simply, it means that more often than not consumers with normal to low credit scores will need more cash money down to buy a used car with a high market value compared to its used car finance value; this makes the used car search a little more difficult.
Used car market values can have a much more dramatic effect on consumers with subprime credit scores, especially when inexpensive used cars with high fuel economy ratings market values increase. These cars above 30 mpg typically have low monthly used car finance payments and are a good fit with subprime lenders and car buyers.
When cheap used cars market value suddenly increases, as it does when fuel prices soar, they often become out of reach for subprime car buyers. This is true because the used car price is much higher than the used car loan value, thus requiring substantial money down from low credit score car buyers.
If you need buy a used car and find a used car lender with no money down auto loans your best bet is to find a vehicle that has with a high loan value when compared to it's current market value. There a few websites that list used car loan values, they are kbb.com, nadaguides.com, and blackbookusa.com.