Tips For Easy And Guaranteed Approval Of Used Car Loans
Used car loans are slightly different than financing brand new cars. Most of the lending institutions or banks will not approve you money for purchasing a used car of five to six years old. They usually charge 2% more Annual Percentage Rates on used car loans, than the new automotive loans. But online auto loan service providers are much cheaper, and their guaranteed auto loan approval rates are very close to new auto loan rates.
Used car loans can be of two different types. The first one is when you need money to buy a used car from a car dealer and the second one is when you need to purchase it from an individual or private party.
When you decide to buy a used car from an auto dealer
You can get easy approval for a used car loan if you are going to purchase it from an auto dealer. It hardly matters whether you have chosen a full service used car dealer or a dealership that has a financing department for used cars. Banks find low risk in giving guaranteed auto loan approval for this situation. Hence, you can have exciting options while seeking finance for used car purchase. Some of the online auto loan agencies will offer rates that will often beat the dealers in the race.
When you think to purchase a pre-owned car from an individual
The auto financers think it very risky to grant you a loan which is required to purchase a used car from an individual or private party. While purchasing a used car from an individual you will be able to get a good deal, but you will find it hard to get approval for the used car loans. Additionally, you will have to pay for a relatively higher loan rate. By doing a research online, you can easily find a few online lenders who will charge you a reasonable interest rate for purchasing cars from an individual or private party.
Before thinking to apply with the online lender with the lowest APR rate for used car loans, you just need to confirm your credit score which should be at least 680 and you should have necessary documents that can give you first preference. Your bad credit rating may make you pay higher loan rates. So, obtain your credit report online at TrueCredit, Equifax or Experian and then go on applying for guaranteed auto loan.
Don’t make cash deposits on a used car
If your deal gets canceled, you won’t be able to get back your cash, but you can surely challenge a credit card payment. You don’t always need a new credit card to make deposits and purchases, but never and ever pay for the used car price in cash. Don’t change your motive even though your card gets rejected due to insufficient credit. The rejection may further damage your credit history and increase the risk of not getting approval even before you apply for it. When your credit score is so bad and you are neck deep in it, maybe it is the right time to purchase a used car.
Make sure you have access to the used car’s history
Before you think of getting used car loans, you should go through an AutoCheck Report and have the car inspection done by a certified technician. If you fail to ensure these two things, you might not be able to get the best value for your money.
Buy an extended warranty for the used Car
You should consider the option of buying an extended warranty for your used car. If the car you are going to purchase is 3 or 4 year old and its manufacturer’s warranty has also expired, you can avoid potentially large repairing or maintenance cost by getting an extended warranty for it.
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