Financing Your Used Car

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What Should I Know Before Financing My Used Car?

Financing Your Used Car

Sure, used cars are often a better financial investment than new cars, but they still require financing to purchase. If you are considering a loan for your used car, here is what you should know.

Look at Your Budget Before You Compare Used Car Prices.

  • Even the best deal will go sour if you get into a used car that you can't afford. So:
    • Know how much you can afford before you shop
    • Compare used car prices widely and understand what your financing dollars will get you.
    • Think beyond the payment. Financing a car is about much more than the monthly payment. Consider reliability, mileage, etc. to really get the most for your money.

Used Car Loans Usually Have Shorter Terms than New Car Loans

  • When considering used car prices as they compare to new car prices, it is important to remember that:
    • Used car loans typically carry shorter loan terms and higher interest rates than new cars.
    • It is a good idea to use a used car financing calculator before you buy. You don't need to go to the dealer first. Visit LotPro.com and use your auto financing calculator to determine how much you can afford. Just plug in those numbers and you should have a pretty good idea of what to expect when you do visit the dealer.

   

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