How to Finance a Used Car
You are ready to begin your quest of buying a pre-owned automobile and want to put your plans into action; however, you may not know exactly where to start. Many drivers are not sure of how to go about financing a used car. Greatneck Motorsports is glad to offer some helpful pointers below.
The first thing you need to find out is your current credit score. Of course the higher your score, the better chance you have of securing a loan. If your credit score is on the low side, think about delaying the purchase of a pre-owned vehicle until you raise your score. Over a period of a few months, not only can you increase your credit score, but you can also save as much money as possible to put towards the down payment. You will receive a loan with better terms if you get yourself into a favorable financial situation.
Inquire about loans from various lenders. Submit all of your loan applications in a short period of time so that the credit reporting agencies will bundle them as one inquiry and only lower your credit score by a few points. Once you already have a preapproved offer, an auto dealership may be more inclined to present you with a very attractive loan since there is competition for your business.
Avoid paying attention solely on the monthly payment or interest rate of a loan to determine if a loan is advantageous or not. It is important to take into account the entire cost of the car. You must add up the total amount of all of the payments that are due over the span of the loan along with the amount you have to pay up front as well as any fees.
With a preapproved loan offer in hand, search for a vehicle that suits your needs best and is priced within your budget. Remember, a hefty down payment will ensure lower monthly payments, a shorter loan term, or maybe both. Plus, your chances of securing a desirable deal on a used car loan are increased if you provide a sizable down payment.
Once you purchase your pre-owned car, be certain to make all of your payments on time! This will permit you to increase the equity in your automobile and also maintain the integrity of your credit score. If you fail to make your payments as agreed upon, you will be in default of your loan. As a result, not only could your car get repossessed, but your credit score will undoubtedly take a dive.
Greatneck Motorsports supplies drivers with an impressive variety of quality pre-owned automobiles at competitive costs. We are located at 300 Great Neck Road in Great Neck, NY and can be reached by calling (516) 590-3580.