So, you’re in the market to a buy your next vehicle. You’ve done the math on your monthly budget, maybe you have a little money to put down, and you’ve decided to purchase a used car. That’s a great choice, and you stand to save a lot of money over buying a brand new one.
Buying the car is easy, either pick a dealer or a private seller and you’re good to go, but finding the rates when financing your car is a horse of another color. You may have tried a Google search for “current auto loan rates used” only to weed through all kinds of articles and ads that were only slightly helpful, if at all. What you need is some solid, honest advice to help you in your venture, right?
Take at look at these tips on finding the best auto loan possible from some experts in sifting through lenders.
Where to Look
All of the best lenders these days are offering loans on new and used cars alike, and not just when you purchase the vehicle from a dealership. If that isn’t the case, then erase them from your memory. Reputable lenders will have outstanding reviews and good marks on both state and federal sites as well as the Better Business Bureau.
Companies like Capital One and Bank of America both offer amazing rates on used cars up to 10 years old with less than 125,000 miles, but that’s just the tip of the iceberg. Another option to look into is U.S. Bank, as they do not raise interest rates for used cars under 6 years old with up to 100,000 miles, and have no restrictions on buying from a private seller. Just a few minutes of shopping around online will give you a wide variety of companies to start with.
Use Your Credit
Often times, interest rates for used cars are automatically higher because more people with bad credit choose to purchase them. Why would you settle for those rates when you have good credit, though? Using Credit Karma, you can view your score for free and use it as the ultimate bargaining chip for better interest rates.
If you do find that your score is less than perfect, paying off any outstanding loans or credits, even monthly, can give you the boost you need to open up new opportunities for lower rates. Companies like Capital One and Auto Express are famous for working with those who have bad credit, or have already declared bankruptcy. The do not restrict buyers based on the same criteria as most banks and companies would.
It is also a great idea to finance through a credit union, as they gladly help their members build up to a good credit score with reasonable loans. Always make sure to check a lender’s track record via state or federal sites, as well as the Better Business Bureau.
Ask For the Deals
Just like bargain shopping, you have to seek out the deals that aren’t always announced. Some lenders will offer deals on lower interest rates for simply opting into automatic payments, while others may apply a discount for a specific type of car. Don’t be afraid to ask the lender what deals they can offer you, as the competitive nature of their business will surely make a good offer or two pop up.
Securing a Good Loan
Finding a quality loan for a used vehicle isn’t as much of a hassle as some claim it to be. Following this advice, you can take charge and secure the rates that you deserve!