Posted Friday, Oct 07, 2022
There's a lot to think about when shopping for a used car. It's exciting, sure—but it can also be overwhelming. What if you get the wrong vehicle? What if it breaks down on your way home? While these are valid concerns, one thing that most people don't consider until after they've stepped onto the lot: Financing.
Knowing about your credit history, where to find financing, and how to apply for a car loan will put you ahead of the game before you approach a dealer or private party.
We've put together a list of the steps you should take when getting a used car loan.
Pre-Approval: Get pre-approved for an auto loan. Before even considering what kind of car you want to buy, you must do your homework on financing to know how much money is available for borrowing and how much the interest rate will cost per month (the APR).
Creditworthiness: Your credit will play a significant role in whether or not you're approved for a car loan. Most lenders will check your credit history before deciding whether to give you a car loan. Your credit bureau is a snapshot of your credit history and tells lenders how likely you are to pay back the money they lend you (or if you're going to default on the loan).
Loan Payments: When looking at a car loan offer, you should keep in mind that the monthly payment isn't the only factor determining whether it's a good deal. Choosing a car based on its monthly payment is a potentially expensive mistake. Instead of focusing on monthly payments, you should compare the total cost of the car—including all payments due during the loan plus any fees—to other loans you've received.
You'll need to use a used car loan calculator to figure out your monthly payment, but after that, it's pretty simple math.
So, what's next? You now have the confidence to finance your next vehicle.
At our company, we offer a no-cost/no-obligation consultation with you about your creditworthiness. We have guaranteed credit approval, which means everybody drives. In just a few moments, we can establish what kind of down payment is necessary, if any, what rate and terms you qualify for, and what type of monthly payment would make sense for your budget. Never pushy and always here to help, the team at CNY Drives gets paid more if you drive away happy. Big Luke designed it that way. Everybody Drives at CNY Drives!
Looking to get pre-approved for a vehicle you saw on CNYDrives.com? Click here.
Big Luke's Tip:
We know what you're thinking. "How can I get an auto loan if I have bad credit?"
It's not impossible, but it can be difficult. That's why we have a team of experts who specialize in helping people with bad credit or no credit find an affordable way to get on the road. With our help, customers with poor credit have refinanced their debt and saved tens of thousands of dollars in interest payments.
Our goal is simple: to make sure everyone has access to quality transportation so they can get where they need to go—and get there faster.