| Purchasing or leasing a new vehicle can be an | | | | If you do get an auto loan do not be surprised if the |
| expensive proposition that you may not be ready to | | | | term for repaying the loan is 3 years or less. Since |
| commit to right now for many reasons. | | | | the vehicle will depreciate in value faster than a new |
| Purchasing or leasing a new vehicle can be an | | | | vehicle would the terms for the loans are normally |
| expensive proposition that you may not be ready to | | | | shorter. If you are not able to secure an auto loan |
| commit to right now for many reasons. But if you do | | | | and you have good credit you may wish to seek a |
| need a vehicle this only leaves you with one option | | | | line of credit or a personal loan from the bank. Since |
| purchasing a used vehicle. A purchasing a used vehicle | | | | this loan will be considered an unsecured loan you will |
| can save you thousands of dollars in interest | | | | pay a higher interest rate than you would for an auto |
| payments, especially if you do not have perfect | | | | loan but this rate may be lower than the rates |
| credit. However, finding a lender for a used car loan | | | | offered by a third party lender. However if you are |
| can be very difficult. | | | | looking to finance a privately sold vehicle this may be |
| Any time that you are considering a financed solution | | | | your only option. |
| the first thing you should do is examining your credit | | | | The next best financing option, and sometimes |
| report. Looking at you credit report will do several | | | | better, is the seller of your vehicle. Most vehicle lots |
| things for you. It will give you an idea of how much | | | | have a few lenders that they work with on a regular |
| interest you can expect to pay, let you know how | | | | basis who can help almost anyone in any situation. |
| creditors will view you, indicate your odds of getting | | | | The advantage of seeking financing at from the lot is |
| a loan and allow you to verify and correct any | | | | that they know who to talk to and how to get their |
| mistakes that you may be there. This is very | | | | vehicles financed. This can save you a lot of time and |
| important as 1 out of 4 credit reports usually contains | | | | hassle however it comes at a price. Most third party |
| errors that can result in you paying higher interest | | | | lenders charge a higher interest rate and the auto |
| rates. | | | | dealer may add another couple of percent to the |
| Once you have an idea as to what to expect for | | | | interest rate as a handling fee. The only way to |
| interest rates and perhaps who will finance you can | | | | offset these higher interest rates, other than |
| begin to shop for your loan. A bank is a good place | | | | shopping around a bit, is to be a shrewd negotiator |
| to start if your FICO score is more than 600 but | | | | and getting a really good deal on the vehicle. |
| there can be several bottlenecks to your getting a | | | | As you can see getting a used car loan can be a little |
| loan. In order for a bank to issue a car loan for a | | | | difficult and may cost you more than a new car loan |
| used car it must meet certain standards. Each | | | | will but it is possible to do. You must carefully |
| situation is a little different but generally your car | | | | examine your needs and then weigh the value of a |
| must be less than 5 years old and ideally be less than | | | | new car verses a used car to determine if financing a |
| 3 years old, have low mileage and still have a | | | | used vehicle is even a viable solution for you. If |
| warranty. The reason for these requirements is to | | | | financing a used vehicle is your only option ensure |
| ensure that the vehicle still is of value if you default | | | | that you negotiate the best deal possible and apply |
| on your loan and to make sure that it is not going to | | | | as much money as you can as a down payment in |
| be a write off while repaying the loan thus | | | | order to reduce the overall amount of interest and |
| encouraging you to walk away from the payments. | | | | total cost of the loan. |