Publish Date - December 31, 2018
Author: Greg Thibodeau
Categories:   Auto Loans & Financing
Used Car Financing
Guide to Used Car Financing
If you are in the market for used car financing, read through this article on financing a used car.
Looking for Used Car Financing
When shopping for a used car, a buyer may know how to find the best used car prices, and they may even know how to negotiate with the dealer, unfortunately, this same buyer may not know enough about used car financing.
Used Car Financing: Dealer Financing
The under-educated shopper may walk into a dealer, and accept their financing without shopping around. Often, dealer financing on new and used cars is overpriced. A smart buyer would never buy a used car without comparison shopping, and should not accept used car financing without that same diligence. In other words, you should shop for the money just as you would for the car.
Used Car Financing: Know Your Financing Needs
Before ever going to a used car dealership, a car buyer should ask themselves these questions, and know the answers.
How much do I need to finance (borrow)? What is the maximum monthly payment I can afford? What financing term do I need (how many months do I want to borrow the money for)?
Used Car Financing: Shopping for Money
Before you ever shop for a used car, you should begin shopping for the money required to purchase it. The best way to shop for used car financing is by looking online for a "direct lender". Used car dealerships are almost always the most expensive source of a used car loan. Banks are also an expensive source of financing. By shopping for a loan online, a used car buyer has the advantage of comparing the financing rates from multiple lenders. At myAutoloan.com, used car buyers can fill out an easy online application, and get pre-approved by up to four lenders. By picking the lender with the lowest financing rate, a used car buyer can effectively choose the "cheapest" money.
Used Car Financing: Know Finance Costs
The "cost of financing" a used car can be evaluated by comparing the annual percentage rate, or APR, the amount borrowed, and the length or the loan. If you do consider dealer financing, be sure to get separate quotes for the used car and for financing, so you can compare these finance costs with the financing offered by online lenders, such as myAutoloan.com.
Used Car Financing: Comparison Shop
No matter what your source of used car financing, comparison shopping for the best used car financing is worth the time and effort. You can save money by choosing the best financing rate for your used car purchase.