Vehicle finance loans

Used Car Auto Loan - Tips On Financing Your Used Car
By Carrie Reeder

Used cars are not as easy to finance as new cars. Lenders are
more hesitant of financing vehicles with unknown pasts.
However, you can find reasonable rates on auto loans by lining
up your financing before you go car shopping. A down payment of
10% or more, plus shopping with a car dealer can also improve
your rates.

Get Financing First, Then Car Shop

Pre-approved auto loans have a number of advantages. First, you
find out what you qualify to borrow before you get stuck in a
contract. You can also play around with loan terms to find a
reasonable monthly payment. And sellers are eager to close a
deal with a buyer that has secure financing.

Used cars loans often require a slightly higher rate, usually
.6 or more, than new car loans. However, rates vary widely
between lending companies, so it pays to shop around.
Processing your loan before your car purchase relieves you from
the pressure of signing with the first lender you find. It also
saves you money in lower rates.

Plan On 10% Down

10% is most often required for a used car loan. It signals to
the lender that you are investing in this purchase and are
willing to make payments. A larger down payment can improve
rates and offset low credit scores.

Another way to save money is to choose a short term loan. Since
a used car probably won’t last as long as a new car, five and
three year loans make the most financial sense. You save on
interest costs and can start saving for your next car.

Shopping With A Dealer

Some lenders also offer better rates when you purchase through
a car dealership, even with used cars. You should weigh all
your options when applying for this type of car loan.

Dealerships usually provide a partial warranty for their used
cars; they also charge more. You may be able to find an
excellent deal in the classifieds, but there is a level of risk
with that purchase. However, the difference in interest rates
between these types of loans is more than 1%.

About the Author: View our recommended Used Car Loan
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Source: http://www.isnare.com