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How To Apply For A Used Car Loan

Cars are some of the most expensive acquisitions you could get. If you don’t count the house or the investment in education, a car will be the priciest purchase you will have. While used cars can be real bargains, some of them can still be quite expensive. Lucky for the ones that can’t afford to buy a used car outright, there are various loans available for the sole purpose of purchasing a used car. The application process is just about the same as you would do with a new car, the only things that will vary will be the rates.

So you want to get a used car loan. Well, first of all you need to know where do you stand with your credit. A clean credit history (which automatically brings a good credit score) will get you in a car faster than you can say “loan”. Use one of the three major reporting agencies: Equifax, Experian or TransUnion to see your credit history. Know that each year you can get a free credit report, if you need more, than there is a small fee involved.

Used Car Loan

In case you have “spots” on your credit history, such as unsolved debts and other obligations that you did not assessed, make sure that you have them checked out. Keep in mind that some spots could be simple mistakes so analyze the credit report with great care because one of those mistakes can harm your credit score and considerably lower your chances to get good rates on a loan for a car. Having the necessary documentation will be enough to sort out any inaccuracies with the report agency.

Ok before you head to the bank or other loaning company, you need to get some documents that can prove you’re a homeowner and steady employment. A pay stub or a letter from your boss should be enough to cover that. Don’t forget to provide documents for your savings account.

Keep in mind that you’re not getting a new car, so don’t be surprised if your interest rate is a bit higher on your used car loan. Almost every bank or loaning company will charge 2% extra in annual interest for each used car loan. The age of the car greatly affects the amount of interest you will be charged. To put it simply: the older the car is, the more you will be charged in annual interest. Yet you need to know that there are VERY few banks that will provide a loan for a car that is 6 years or older. Because of their age and amount of use, banks don’t see these cars as enough collateral to cover the loan in case of payment problems.

Knowing that each bank or loaning company charges differently, it would be a good idea to visit more locations before making up your mind. Don’t go to the first place that comes to mind and get a loan because a little research does wonders and you will find another company with lower rates 90% of the time. Your best bet would be getting loans from company that work exclusively with car loans. For example the Capital One Auto Finance offers car loans to people that take buy their cars from dealerships. On the other hand Up2Drive will over loans when the individual decides to purchase used cars exclusively from private parties.

Now since you’re set all you need to do is to complete the loan application. You will have to provide some contact information and financial info such as income and SS number.

Best Used Car Loan

Used cars in present days had become the perfect business for car traders. Because of the global economic crises people don’t afford to buy new cars and they choose used cars, same models. We all know that a new car becomes used car even if the owner used it just for few miles and the price of it is lower than a new one.

And for the deal to be even better, the buyers of the used cars usually get a loan if they can’t afford paying it cash so they don’t lose the best deal for the car they wish to drive. The best used car loan is the loan with the smallest rates, costs and without extra taxes. This is pretty difficult to find, but if you search long enough we will see that lease is the best loan. Because banks have bigger taxes than leasing companies, we better choose lease when we think about buying a used car.

Best Used Car Loan

Usually leases are having rates between 5.04% and 5.71% depending on the period of time for paying back the lease. Usually a lease contract can be in time from 36 to 48 months for used cars, but there can also be chosen different periods of time, depending on your agreement with the leasing company.

So, in order for you to choose the best used car loan, you better use the used car loan calculator. In this way you can calculate anytime your monthly payments, the costs of the loan and the taxes for every state you live in. For using this used car loan calculator you just have to fill few fields with dates about price of car, period of loan contract, and the calculator will tell you exactly your monthly payment or if you insert the monthly payment that you can afford the calculator will tell you what is the amount you can take from the financing company. In this way you will know for sure what car you can afford or how much you will pay every month so you avoid surprises after the signing the loan contract.

Where you can find the best used car loan calculator? This is a very easy issue. You can search on the websites that are specialized in selling cars or in providing information about cars, you can also find it on the leasing companies and banks websites or you can simply go to visit the financing company or your car dealer that has signed a contract with a lease or loan company and he has knowledge about the car loans and how to calculate monthly payment for you.

Very important for you to know is that you can get a loan for purchasing a car or you can get a loan or lease to refinance your old loan or lease if you find a better rate and better taxes than your old loan.

Used Car Loan

Since cars are an indispensable part of our lives, everybody needs them if they want to get anywhere fast. If you’re heading for one, the first thing that comes in mind is money. If you cannot afford a new one and you’re heading for a used one and realize that you still more cash than you have, there are still solutions. One of the most popular is a used car loan.

Ok so agreeing upon going for a loan? Good. The first think to do before even thinking of getting a loan is checking the car thoroughly. The best way to do so is go and get a Vehicle History Report. That will enable you to see all the stuff that’s been going on with the car. The History report cannot lie to you so you’ll know exactly what the car went through, crashes, eventual major repairs and other things that may affect authenticity and performance. Another important thing is getting the help of a certified mechanic to inspect the car from hood to wheels. The History Report may be clean as a whistle, yet if the car has not been properly maintained and just looks good, you’re in for an unpleasant surprise.

Despite the hard times created by the financial crisis. The car market is still running well so getting a car will not force you to have big expenses, if you know what to do and have a good plan ahead. Getting a loan for a car purchase has become easier than ever especially if you have a clean credit record. The simplest way is to access one of the websites that specialize in car loans like Up2Drive located at: http://support.up2drive.com/offer/?AID=10585121&PID=267874 and you’re good to go. In case of less than spotless credit records than getting a loan can be a bit trickier. You still have a good shot if you head for AutoCreditExpress at : https://www.autocreditexpress.com/sem/?lpgid=short&affid=ap001113&subid=7 . They are specialized in dealing with bad credit, bankruptcy or repossession.

Used car loan

Be careful when you go car hunting. Document upon every car you pick since no bank will lend you any money for a used car that is too old. If you see a manufacturing date older than 5 years wave it goodbye. Know that banks charge minimum 2% more on Annual percentage rate (APR) for every used car loan. Yet you may get lucky online since lenders there are way cheaper, and used car loan fees get closer to new car loan fees.

Remember: never ever put cash for a deposit on a car. If a problem occurs with the deal, you may never get your money back, since the action of placing money in a deposit was done willingly prior to a transaction. A credit transaction on the other hand can be disputed since it’s related to the very contract. If you don’t have one you can head for one of the thousands of offers from every bank. A popular credit card is the Discover Platinum card, or Discover Student Card, both of them having 0 annual fee, and are fully protected from fraud.

Before you buy the car, take into account costs like insurance and extended warranty (which is a must have in case your car falls apart). Some of the best auto insurance quotes can be received from Allstate, GEICO or BestCarInsuraceSite. If you’re going for an extended warranty, there is no better place to go than CARCHEX or WarrantyDirect. They can offer you unbeatable odds and good coverage for most car parts.