back to articles | October 01, 2019 | Dale Peterson
Categories:   Tips & Insights For Car Buying    Auto Loans & Financing    Consumer Credit    Loan Calculators & Rates    Types of Car Loans    Vehicle & Buying Research    The myAutoloan Difference
Buy Pre Owned Cars and Loan Options
If you are looking to purchase a used car, you need to research well to get a good deal. While used cars are cheap, you may end up with a poor deal if you are not careful. Before you apply for used auto loans, find out the type of vehicles that you preferred lender can finance. Some lenders do not finance the purchase of used trucks and motor homes or vehicles that are more than 5 years old.
You can never be sure of the performance of a used car until you take it on the road. Never buy a car before you get behind the wheels to ascertain its performance. If you are looking for a used vehicle that is guaranteed to offer high performance, consider purchasing certified pre owned vehicles. These are vehicles that have been repaired and certified by the manufacturers to be in good condition. Moreover, they also have the manufacturer’s warranty.
Before you apply for a used car loan, find out the total cost you will incur. Check the interest rate and other fees that you will pay. You should shop around and compare the rates charged by different lenders to get a loan that you can afford. Other things you should consider when looking for used auto loans include the term of the loan and the monthly installments. You should also go through the terms and conditions of a lender before you apply for a loan.
Refinancing Your Used Car Loan
If you feel you are paying too much for your current used auto loan, you can refinance it to save. A more manageable loan will help you avoid defaulting on your payment and can also help to improve your credit score. Below are some tips you should consider when you want to refinance your current loan.
1. Low interest
Look for a loan with a lower interest rate. If you have been paying your current loan on time, your credit score may have improved and you may qualify for financing at a lower rate. Any savings that you qualify for on interest rate will be worth pursuing.
2. Low fees
Check the fees charged for the used car loan. You want a loan that comes with minimal monthly fees. Go through the terms and conditions of the lender to know of all the fees you will have to pay. Check late penalty fees, early exit fees, set up fees, and other fees before you apply for a loan.
3. Higher payments
Opt to make higher payments for the loan to reduce your total debt. For example, you can provide a down payment for the used vehicle loan. This will substantially reduce your debt and the lender may also reduce your interest rate. Another option would be to make higher monthly payments. However, check that the lender will not charge you early exit fees.
Before you refinance used auto loans, research and compare the types of financing that you qualify for. Go for a loan that comes with monthly installments that you can easily pay off.