Whether you are buying a used car because of budget constraints or you just love bragging about the great deal you got on your new vehicle, financing a used car comes with its own challenges. When you purchase a new car, dealer financing or bank and credit union loans are pretty easy. If you are hoping to buy a car that is a few years old, consider these tips for making sure you get the best deal.
Find out what the restrictions are when buying a used car. Often a vehicle that is seven or more years old will not qualify for financing. You will also want to consider how long you can finance the car, and what the payments will be. Make sure you keep your budget at the top of the list when searching for a great used car.
Many car dealerships offer their own financing when selling used cars. You need to keep in mind that you may pay a higher interest rate and more money for the vehicle when buying this way. Look at all of the numbers ahead of time and make sure the money you think you are saving buying a used car is actually the reality.
The older the car the more likely you will have repairs in the future. You do not want to end up paying for a car that you can no longer drive because the motor blew up or the transmission went out. When financing the used car, check into getting an extended warranty that will cover major repairs.
If you have a vehicle to trade-in use this as your down payment. The less money you actually need to finance the better deal you will get on your used car. Although most of us need a vehicle to get around, we don’t have to pay huge car payments to find a comfortable reliable vehicle that will last for years.
