Many car owners will agree that purchasing a used car can be very beneficial to your finances. Depending on your personal financial situation, you may find it easier on your budget to purchase and finance a used car. Although you may have bad credit, no credit, or a bankruptcy on your credit history, many dealerships are still able to help you finance a used car loan. When applying for a loan at a car dealership, keep in mind the following tips to ensure you get the best loan for your budget.
Check to see which financial institution the dealer is using. While some dealerships check with multiple banks and credit unions to achieve the best APR for your loan, others are able to finance the loan directly through their business. The total cost of the loan will depend on the Annual Percentage Rate, as well as the term of the loan. Stretching the loan out for a greater term will decrease your monthly auto payments; however, it will increase the total cost of your vehicle. Try to settle on the shortest term possible.
There are several websites online that offer a used car loan calculator tool which will help you find the price range and monthly loan payment that you can afford. These calculators allow you to play around with the numbers involving your used car purchase in order to find the amounts that work best for your budget. By simply typing in your loan amount, length of loan, down payment and interest rate, you can determine your monthly payments. Purchasing a car that you can easily afford will make it easier to fit your monthly payments into the budget. Making the minimum monthly payment is fine; however, making a slightly larger payment will decrease the cost of your car considerably over the life of your loan.
Financing a used car loan will help you get into the car of your dreams even faster. Drive home in your newly financed used car today.