With the struggling economy, many people look for used cars when replacing their current vehicle rather than buying new to help cut down on expenses. The savings when buying a used car can be substantial as the value of a vehicle drops close to thirty percent within the first year it is driven off the lot. Besides just the reduced price for the car itself, there are many reasons to buy used such as wide availability of vehicles to choose from, lower insurance costs and the accessibility to used car loans through various lenders.
However, being financed for a pre-owned vehicle is slightly different from obtaining a loan for a brand new car. Most banks will not provide used car loans for vehicles that are older than five years and they often charge a higher APR than they would on a new car. Online lenders can be one of the best ways to obtain a loan if you are purchasing a pre-owned vehicle as they often provide interest rates that are closer to new car rates than traditional lending institutes. There are some online lenders, such as myAutoLoan.com that offer competitive interest rates and often times will even match or beat a dealer’s rate.
There are essentially two ways to purchase a pre-owned car, one is through a dealer and the other way is through purchasing it from an individual. Most lenders consider buying a car from a private party as risky and either do not offer loans to cover that type of purchase or have stringent requirements to qualify for the loan. One of the few online lenders that will offer used car loans for a private party purchase is myAutoLoan.com.
In order to make sure you get a reliable used vehicle and the best car for your money, there are several things you should consider. First, you will want to set a budget to determine the loan amount you can comfortably pay each month and an overall budget for the highest amount you are willing to spend on your car purchase. It can be helpful to find at least three used vehicles that fall within your budget that you would be willing to buy. Being interested in more than one car allows you more flexibility when negotiating the price. Second, once you have one or two specific cars in mind, ask for the Vehicle Identification Number (VIN) and research the car’s history. You may have to pay a nominal fee to access this information, but it could save you money in the long-run by preventing you from buying a lemon. Third, have the vehicle inspected by a trusted mechanic rather than relying on the seller’s or dealer’s word.
You may also want to consider seeking out financing ahead of time, so you know how much money you have to work with and your budget restrictions. On myAutoLoan.com, you can receive up to four different used car loans within a couple of minutes. The online application is fast, free and easy to use.