Used Car Loans

1. Before getting used car loans, it is wise to obtain your credit report.

When shopping for a used car and in need of financing, it is best to have a credit report handy to make any necessary changes and to avoid surprises. A financing applicant can request a copy of their credit report free of charge from one of the three major national credit bureaus. These three bureaus are: Equifax, Experian, and Trans Union. Knowing the credit rating score can also give the borrower negotiating power when getting used auto financing.

2. The car you are buying must meet certain requirements for a used auto loan.

The used car must have a certain amount of mileage, look good in appearance and be road worthy in order for a borrower to receive an auto loan. The worth of the car determines the amount of available funds for purchase. The amount a lender will let an applicant borrow for a used car is determined by how much the car is worth.

3. People with bad credit pay lower used auto loan rates.

Lenders will charge the borrower high interest rates if their credit score is really low. The better credit the applicant has the better interest rates and terms they will get on a loan. If the borrower might have better credit currently than they did when they got their original financing, it may be wise to refinance.

4. There are advantages of getting used auto loans before buying a car.

Having guaranteed financing gives the buyer greater bargaining power and flexibility similar to shopping with cash. Financing from a dealer will usually cost the buyer more. It is best to comparison shop, because most of the time a buyer can find a better deal than the dealer can offer.

5. Getting a used auto loan requires money management.

Proverbs 27:23-24 - Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation?

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