When you’re looking for a used car auto loan, there are a number of ways to optimize your chances of good financing deals that won’t wreck your wallet. Just because a vehicle is not brand-new doesn’t mean it can’t get extremely expensive with the wrong kinds of auto loan deals in place. Below are some tips, that will help make sure you have the right payment agreement in place for your pre-owned ride.
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Timing is Right
Interest rates on car loans float up and down with prevailing economic conditions. Do some research on current rates and key indicators that can tell you if rates are going to be steady, rising or falling in the near term.
Budget
Know beforehand how much you want to spend on a used car and what you’re able to afford a loan payment. This will save you time and also save you from purchasing something you might not be able to afford.
Shop for the right Loan
Banks are competitive and they make money by lending money. They really like auto loans because the car itself is collateral for the loan. Make sure each banker you speak with knows that you’re comparing rates and terms at other banks. Some dealerships offer in house financing, this makes it easier and sometimes you can get a better deal.
Your Contract
Make sure you read the contract over, all the fine print. If you have any question, take the time to ask, make sure you understand everything that is written in your contract. If you feel comfortable, have your spouse or family member look over the contract also. two pairs of eyes are sometimes better than one.
Make sure you take the time and really think about the purchase. Buying a car and getting a loan is a big responsibility, make sure it is the right thing for you to do!
Source – Used Car Auto Loans by Sheila