Looking forward to being the proud new owner of a used car? Kind of an oxymoron, but still, buying a used car can be just as exciting as buying new. Why is this? I am sure you have heard how significantly the value of an automobile drops the minute you drive it off the lot. Although buying a new car does have its benefits, buying a used car can be just as advantageous to customers. Additionally, finance options are just as available for used cars as they are for new.
When people buy a car a solid majority of them have to finance the car. This means you take a loan out for the price of the vehicle, and then pay monthly plus interest for a certain amount of months. The amount of months can range from 24 all the way up to 72 months usually. If you are looking for the lowest payment possible you would want to extend your loan out as many months as you can. One stipulation though is the longer the loans term the higher your interest rate might be.
The beauty about auto financing is that you can have any used car financed. It doesn’t technically matter how old or new it is. You will often see though that the newer the car the lower the interest rate will be. The main thing that fluctuates for an auto loan is the interest rate. Many other factors usually stay the same.
To get the loan process started you will have to submit a credit application. This will either come back approved and denied. If you are approved, you will be notified to what extent and you will be told what interest rates you qualify for. If you have been denied at some car dealerships because of your credit, do not let this get you down. All dealerships use different means of financing so you should continue the search in finding a dealership that will help out your situation.
Other variables to consider when shopping for a used car include the amount of money you plan on putting down and if you have a car you need to trade in. The down payment will help lower your monthly payments and can get you a better interest rate with your financing. A trade in can either help you or hurt you. If you owe more money on your current car than the dealership will give you, that amount owed will be rolled into your next car loan. If you do not owe anything on your trade in, you can use that money towards a down payment or to put into your pocket, making it a perfect scenario when shopping for a used car.