How to Finance a Used Car
Purchasing a used vehicle is a great way to upgrade your ride without breaking the bank. A lot of buyers make a crucial mistake that costs them more money than a used car should. We’re here to help you learn how to finance a used car so that you are getting it for the best price possible.
The very first thing you need to do is find out your credit score before you apply for financing. This determines your interest rate and the terms of your loan. Once you know this, do some research on lenders. It’s important to know the difference between different types of banks and credit unions. Once you have these basics down, you can apply for a loan. Choose multiple lenders to apply with. You’ll want to compare the offers you receive to ensure you choose the one that works best for you. This will ding your credit but only by a few points if you apply for them all at the same time.
After you decide on a loan, you’ll be able to go shopping! Make sure you’ve done research beforehand, so you’ll have an idea of what you’re looking for. Do you need a truck, car, or van? How many miles are you comfortable having on the preowned vehicle? Do customizations like leather or fabric seats matter to you? No matter what you decide on make sure to get a vehicle history report so you can make sure the car has no issues. Don’t settle for less than what you want – if one dealership doesn’t have it, try more of them.
One of the most important things you can do when car shopping is show confidence while you’re negotiating. If you were intending to sell your current car privately, don’t get talked into combining transactions. Putting down a sizable down payment is a good way to ensure you’re only paying as much as your new vehicle is worth. You don’t want the interest to drive up the final cost.
After you’ve made your choice and signed the papers there are a few more steps you’ll want to take! Make sure you get the right amount of coverage with your auto insurance, make all your payments on time, and refinance your car loan if possible, to lower your interest rate or extend the length of the loan.
Once you’re ready to invest in your previously owned vehicle, come visit us here at Yonkers Automall. You can rest assured that we will help you find the perfect vehicle at the right price!