Finding an financing for the purchase of a used car can be a
little more difficult then getting an auto loan to by a new
vehicle but is not impossible. Most of the same requirements
that apply for a new car loan also apply for to a used car loan.
One of the biggest advantages of buying a used car is the cost
saving. If you have less than perfect credit than buying a used
car can save you hundreds of dollars in interest and help you
rebuild your credit while providing an asset that a lease
As with any major purchase, the first step as always is to
ensure you have a source of financing and are away of your
budget limits. Everyone should do a credit check once a year to
ensure that the information on his or her credit file is
accurate. On average one out of four people have mistakes on
their files that may be hurting them by lowering their credit
Once you know your credit standing it is time to look into your
personal finances. How much can you afford as a down payment?
What can you afford to repay in total and monthly? What will the
insurance and maintenance costs be? Make sure you very closely
examine these questions. If you are trying to rebuild your
credit the worst thing you could do is to take on too much and
start to get behind or miss payments.
After you know where you stand financially you can begin to shop
around for a loan. Depending upon where you are applying for a
loan you may need to know how much the loan will be for first,
meaning you must do your car shopping first. Either way it is
best to know how much you will be approved for so you know what
price range to be looking at.
If you have had past credit problems that have affected your
credit score, you will have a difficult time obtaining auto
financing from most banks. In these types of situations your
best option is to apply online for an auto loan.. Websites like
Car Credit Center
allow you to apply for a used car loan 24 hours a day and will
help you find financing from a lender or dealership in your
The criteria for an acceptable used car loan are tighter than
for a new car. Typically a used car should be about 3 years old,
have low mileage and should have a warranty. Other cars may
still be acceptable but cars that fall into this category have
the highest resale value and therefore make your auto loan more
When financing a used car often the interest rates will be
higher perhaps by 2%. The higher rate is due to the greater risk
of a loss for the lender. Over the term of your loan you may
find that the interest on a new car would be greater than the
extra 2% on a used car meaning you are getting a better deal.
A very good place to shop for a used car is a dealership. The
best option is to find a car that someone leased or returned.
Purchasing a fairly new car from a dealer will make the
financing much easier.
If you elect for this option you will want to get an extended
warranty. Most new cars are very dependable, some not ever
needing servicing for 50,000 miles or more. As the mileage and
age of a vehicle increase so does the odds of having expensive
repair bills. Being a used car you do not know how the previous
owners drove the vehicle so the best option for you is to get an
extended warranty. It only makes sense to protect your asset.
If you are looking to rebuild your credit without having to take
on too much debt then perhaps financing a used vehicle is a good
option for you. You get a new car, great terms, a smaller loan
to repay and a warranty to protect you if anything goes wrong.
For more information on used car financing pr to apply online
for an auto loan visit Car Credit Center
About the author:
About The Author: Steve Wilson has been working in the used car
buying And Financing industry for over 15yrs and is currently
working for Car Credit
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