Tips on Finding Used Car Auto Loans

Used Car Auto Loan - Tips On Financing Your Used Car

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%.

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View our recommended Used Car Loan lenders.

Used Car Loans - 3 Tips For Financing Your Used Vehicle Online

Financing the purchase of a used vehicle can be done through the convenience of online car loan lenders. Through their websites you can request quotes, compare terms, and even apply online. Online car loan lenders save you time and money by making financing shopping easy. The following three tips will ensure that you find the best financing for your vehicle purchase.

1. Request Quotes

It is easy to compare rates online, but you really need to request quotes to do real comparison. You should compare car loans much like a mortgage. A difference as little as $17.00 a month can save you over $1000 on a 60 month loan. Some lenders charge fees, so watch for those. Sometimes small fees up front will save you money through lower interest payments over the course of your loan.

To find low rates consider using a car loan broker. They work with several different lenders to bring you multiple offers to choose from. You can also request quotes from individual lender websites. With either type of site, you will receive your quote instantly, enabling you to make a quick comparison.

2. Compare Terms

It is equally important to the compare terms of your car loan. The longer loan term you choose, the more you will pay in interest. However, longer loans also have smaller monthly payments. You will also want to look at fees that may be associated with early repayment or late payments.

Another factor to consider is increasing your down payment to 20% of the vehicle's value. In some cases, this can qualify you for a lower rate.

3. Get Prequalified

To gain added leverage in you car purchase get prequalified for you car loan. By being prequalified, you get a blank check by FedEx to go shopping with. You can use it to purchase a vehicle from a dealership or individual.

In either case, you have the advantage as a cash buyer. There is no question about your credit history, so there is the incentive for the seller to close the deal. Take this advantage by negotiating a lower price.
About the Author

Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended auto finance companies online, visit this page: http://www.abcloanguide.com/autoloans.shtml

Used car Loans - Great Financing Tips

"Get a Used Car Loan to Get Your Dream Car"

So you want to own your dream car. Your finances, however, hinder you from getting behind the wheel of a brand new vehicle. You decide to go for the "second-hand, via loan" option, but of course you do not want to get stuck with an old clunk of metal.

Do not lose hope. Here are some basic rules that you should follow towards getting a used car loan and owning the right car:

>>Set a price range.

First, sit down and calculate.

Get all the other financial considerations out of the way (i.e., mortgage, food, utility bills) and work with the figure that you are left with.

Remember to add car maintenance costs such as gas and insurance to your set of figures so that you would have a ballpark amount of what you can pay for the used car loan that you plan to obtain.

A good rule is for you to use approximately 20% of your monthly income as an allotment for your car expenses.

Once you have your budget determined, make sure that you stick with your budget and not overspend.

>>Look at your options.

Once you have determined the budget, you may now decide where to obtain the used car loan from.

*Bank, Dealer or Person-to-Person? Do not look at banks as a primary option, as they will not lend you money for a used car which is more than a few years old.

A kinder option is to check out online lenders which are generally cheaper. There are a lot of web sites which offer a loan calculator. Just sign-up online and they will send you price quotes.

The third and best option is dealing with a person directly. You may want to check out used car dealers within your area. This way, you can ask a lot of questions about the financing of the car loan. Dealing with a person directly will also allow you to iron out details like deposits and monthly installments.

>>Research and do your homework.

If you have already determined your budget and where to get the loan from, you can now choose the car that you want to drive home. Consider your own needs, or your family's - if you have one - in determining the car model that you want to own.

>>Choose.

Check out everything that you need to know about the vehicle that you want to own. Consider the speed of the car, the model and the price. Once you have narrowed down your options and considered everything, you may now proceed and obtain that used car loan and get behind the wheels.

About the author:

Jay is the web owner of http://www.new-cars-in.com New Cars Online, a website that provides information and resources on searching for new cars, new car pricing, loans, and dealers. You can visit his website at: http://www.used-cars-in.net Used Car Prices

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