If you do your homework on used auto loans, you can get a great
one. If you don't, you'll probably end up spending as much as
thousands extra on interest. A little time is worth it, so take
the following steps when purchasing your auto.
First step, plan your budget. Before you start looking for used
cars, or used auto loans, you have to know how much you can spend,
and when you can spend it. Do you need to find used auto loans
that require extra small down payments, or do you prefer to pay
more down and less monthly? The lenders can't help you find what
you want in used auto loans unless you know yourself.
After you know what you can afford, you can start looking for used
auto loans. You'll need to prevent all the providers of used auto
loans from running a credit check on you, because this will lower
your credit about 5 points every time it is run. To avoid damaging
your credit, get a copy of your credit report before going to the
lenders of used auto loans. Include the ‘Credit Score' option, and
you'll be ready to get accurate information on what rates are
available to you. Then you can include the used auto loans cost in
interest in your budget.
It is important to find used auto loans before you actually shop
for the car, or you'll end up taking whatever the dealer offers
you in the way of financing. After you're equipped with the
necessary credit information, check out the following sources for
used auto loans:
The Internet. This is the first place to start looking. You
can find used auto loans from the comfort of your own home, and
have more offers to compare than you will get anywhere else.
Your local bank or credit union. This offers the advantage
of being able to apply for used auto loans in person, explain your
credit history if you need to. Besides, since they want to retain
your business, they'll try to give you a good offer.
Your mortgage company. If you're a homeowner, look into
taking out a home equity loan or line of credit. This may give you
the lowest APR (annual percentage rate) for used auto loans, but
one possible downside is that they'll likely require a minimum
loan amount, which may be more than you want to take out.
The dealership you buy your car from. Generally speaking,
this won't be your best option for used auto loans, but they might
surprise you. Look for specials, but keep in mind that if the
offer seems too good to be true it probably is.
You've shopped for used auto loans, now you just need to buy the
car. Make sure, however, that your financing is in place before
you sign the papers for the car, and the salesperson won't be able
to scam you.
Research the used auto itself as thoroughly as you did the used
auto loans. Compare prices online, and before purchasing, get a
copy of the vehicle's history from CARFAX, this will let you know
if the car has been salvaged, in any major accidents, and other
useful information. When you're signing the papers, make sure it
doesn't say anything in there about taking the car “as is.” If it
does, you're out of luck if the car breaks down on the way out of
the lot, which has been known to happen.
Being informed will make finding used auto loans and buying your
car easier and less costly. Best of luck with your used car
purchase!
