Here are some useful tips when surfing
the net for a used car loan:
1. To qualify for a used car loan,
make sure to keep your credit score to
at least 680. People with bad credit
pay higher car loan interest rates. A
used car loan wouldn't be any
different. Get hold of your credit
report online. Never apply for a car
loan, much less for a used car loan
unless you get your credit report with
credit scores first. Depending on
other factors, a high quality lender
like some finance companies or banks
do, can approve used car loans for
people with scores as low as 540.
2. Never pay cash for a deposit on a
car. You can dispute purchases made
with your credit cards or bank checks,
but it’s impossible to fight cash
without a receipt. But without proof
of the transaction, you can be taken
advantaged of by swindlers.
3. Shop for auto insurance costs on
the used car you are looking to
purchase to make sure your insurance
rates will remain the same, because in
most cases you will be required to get
full car coverage during the terms of
the loan period. Auto insurance sites
give free online car insurance quotes.
4. Get an extended warranty for your
used car from a reputably dealer
because extended warranty companies
make their money from not having to
pay for your car repairs. And in most
every case will fight you on the
repair issue. If the cost of this
warranty is over $500 you may consider
not getting the warranty and just
keeping a credit card for car repair
emergencies. You will save $500 up
front and in most cases you won't need
the warranty anyway, and in other
cases you'll have to pay for the
repair first then file papers for your
warranty money.
So before deciding on a used car loan
you better ask yourself these
questions:
What are the drawbacks of a used car?
What are the benefits of a used car?
Think twice: A used car could have a
listed maintenance and repair history.
And most do not.
Used car warranties often are
available at extra cost. And do carry
some extra risks.
The maintenance costs get higher as
the miles on the vehicle climb toward
100,000. Making sure the oil was
changed at the 3,000 mile mark is
important when your car starts to age.
There are not as many safety and
convenience features as newer vehicles
have.
A used car, however, will be
significantly cheaper to buy than
going with a new model. And if you
purchase comprehensive and theft
insurance your costs are likely to be
less.
After weighing the pros and cons, you
can decide if a used car loan is for
you.
