Used Car Loans
Used car loans are often a lot harder to finance than new cars. This is because the loan-to-value amount has to be right and some dealers overprice their used cars. If you are buying a car that is only worth $9,000 for example and the dealer is charging $10,500 for it, then you probably won't get a loan for more than $8,000. That means you'll have to come up with the rest as a down payment. There are some lenders that will work with less or give a little more, as well.
Key tips for when you want to get a used car loan:
- Make sure that you always lowball the price. Don't be offensive, but know that the sticker price isn't set in stone. Name a price that's about 2/3 of what you actually want to pay and see where they come down to.
- Check out the loans that are available, including their interest rates and how much money you can get. If you are buying a car that's more than its value, figure out the difference that will be your down payment or that you can get knocked off the price.
- One of the best ways to get the used car loans that you want is to walk away. There are so many ways you can haggle, but 9 times out of 10 if they offer you a deal that's not right, you just have to walk out. They'll likely call you within 24 hours to let you know they worked it out. They want the sale worse than you. Remember that.
Advice on finding the best used car loans:
Used car loans aren't tricky. You can find a lot of lenders online even to help you find a car dealer for bad credit or a lender that will work with a unique situation. Even if you just need a normal loan, you'll find that too. Make sure that you take the time to check out your options and get a loan that you can use.
The lender that you choose is up to you. Check out the down payment, interest rate, and other terms of the used car loans you are offered to compare your options and choose the best one. Also, make sure that you get a lender that is supportive and there with service when you need them, no matter what type of loan they offer. That's the best way to go about getting a used car loan.
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