How to Get a Used Car Loan
Buying used can save a customer a great deal of money in the long term. However, most people do not have the cash available to buy a used car outright. A used car loan can be a great help to making that big purchase.
- Check your credit score before you begin looking for a car. If your credit score is low, your options for a used car loan will be limited. According to federal law, you are entitled to view your credit report once a year through the Annual Credit Report website. If you have any outstanding debts or discrepancies, clear those up before you continue the process.
- Prequalify for a loan at a bank. This will help you have the buying power that you need when you hit the car lot. Make an appointment to meet with a loan officer and discuss your options. Fill out the required paperwork and wait for a response from the bank. If you have been approved, then you will have several different options ahead of you. If not, you will have to go to a dealership that will offer in-house financing.
- Go to the car lot and look for a car. When you find a car that you like, you can pay for the car with a check that you have received from the bank. After using this check, you will make monthly payments to the bank to repay the loan. If you are financing through the dealership, make sure that you look over all of the loan documents before signing. Buy-here, pay-here dealerships sometimes have a reputation for putting car owners in lopsided agreements that only serve the dealership. Ask to take the loan documents home to examine carefully before you sign. If they do not agree to this, find another dealership to work with.