How To Get A Used Car Loan?
You cannot get yourself a car loan for a new or used car as easily as buying something from the local supermarket. People in auto finance companies are not sitting around with cash that they will hand out as soon as you tell them of your need for a loan. Be sure of what you want before you make any move in this direction.
You need to be prepared before you start looking for the car loan for the used car that you have had your eyes on. A car loan is quite an investment which could be a burden on you for quite some time to come. So how do you get prepared?
Budget your buy
No doubt you have set your minds on owning that particular red coupe that you have had your eyes on. But can you afford it. Note down all your income and expenses figures and see whether you have the capacity to repay any used car loan that you take. Make such an estimate for the future and other expenses that may also come up. That way you are always sure of making the payments and not having your dream car taken back from you.
Understand the total cost of your buy
Now that you have decided how much you can afford to borrow for your used car, see whether you have the monthly income that will also allow you to run it, Fuel, insurance, maintenance and your loan interest should also be covered. Or you may find that the cat that you have taken such a big loan to buy is just lying outside your home because you cannot afford to run it. Your overall cost should not exceed 20% of your budget for the car.
Keep your credit lines clean
Get yourself a credit report from the various credit reporting agencies and go through it in detail, to see that all the figures given by them really constitute your credit history. If you have some history of being late in any payments, however minor, this can affect the interest rate that the lender you approach could charge you.
Decide finally. New or old
The difference in cost between a new car and a used car is considerable. But the newer car will have the advantage of later technologies and would therefore be cheaper to run and cost you less for maintenance. Plus, it would be easier to trade in after you have used it for some time. It would unfortunately depreciate faster, but that only counts if you are using it for business. Make your choice on old or new after going through all the options and then make up your mind to go in for the loan that you need.
See that you have made all these preparations before you approach any of the thousands of lenders available in your locality and on the internet. Car loan finance companies are a plenty. Settle for one with a clean reputation and go for that loan and get your used car today.
