Used
Car Loan Advice:
It is often more difficult to get a used car
loan than a new car loan. Used car loan rates
are also usually higher than new car loans. You
will not find special financing deals from dealers
like the ones they offer on new cars such as 0%,
1.9%, etc. A used car loan is a higher credit
risk for the lender due to the uncertainty that
comes with used cars (for example if the car dies
shortly after it is purchased and the loan is
defaulted there is no collateral left). Many lenders
will also not fund used car loans for very small
purchases.
Interest rates for used car loans are much more
variable so doing your homework will definitely
pay off. New car loans are often pretty standard
while used car loans fluctuate very much based
on the amount and your credit rating. If you have
a low credit score it is even more important that
you shop around for your used car loan because
your rates will usually be pretty high.
Securing a used car loan before you shop for
a car can help you a great deal. Finding out how
much money your loan is approved for will help
you choose the make, model and year car you can
afford. Having a car loan secured ahead of time
will also put you in a position to make an offer
and complete the transaction when you find the
car that is right for you. Getting a quote from
an online lender is often the best way to start.
It is free to get a quote and it will give you
a good idea of the rates and car loan amount that
you qualify for.
|
