Tips for financing a used car?

How to Finance a Used Car the Smart Way

Many sources will tell you that financing a used car is a terrible idea. It’s not. You just have to be smart about it.

Here are our tips for financing a used car.

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Tips for Smart Used Vehicle Financing

Make the biggest down payment you can afford. Most loan contracts have a set number of months or years to be paid back. That time period is then assigned a rate based on multiple factors, like credit score and how much is still owed on the car. Since most places make loans for somewhere between three to five years, then the less you owe from the very beginning means better rates and less interest paid in the long run. If can afford to buy the vehicle flat-out, do it.

Get pre-approved for an auto loan. Getting pre-approved has multiple beneficial side effects. It gives you a baseline of what to expect from other lenders, which gives you bargaining power when it comes to buying a used vehicle. It also speeds up the car-buying process considerably.

Pick a vehicle payment that works with your monthly budget. When it comes to finances, there’s a difference between how much money you have and how much you can afford. Just because you make x-amount every paycheck doesn’t mean you should spend it all when you get it. Choose a payment that you could afford easily if you were laid-off or an emergency expense came up. We have a payment calculator that can help you with that. Your wallet and credit score will thank you. Speaking of which…

Know your credit score. While every credit score monitoring service differs in small ways, your credit score shouldn’t fluctuate more than a few points in either direction. If you go in to buy a car and the salesperson tells you that your credit score is much worse than you know it to be, you can avoid those shady business practices and find a better dealer.

Want a No-Hassle Buying Experience?

No problem. Here at CrossPointe Motor Cars, we’re straightforward. The sticker-price is based on fair market values, meaning there’s no need to haggle to get a reasonable price. Our sales team will walk you through every step of the process, explaining what everything means. No “just sign here” and quick page turning. On top of that, many of our cars come with an extensive lifetime warranty, meaning you don’t have to worry if your vehicle breaks down.