Used Car Loan

Used car loan are no different from loans for new cars. You can secure a loan for both through banks, credit unions, or used car dealers. The only variation will be in used car loan rates and terms. Lenders usually charge higher rates of interest for used car loans because of the low resale value of these cars.

The used car market looks promising. Many financial institutions have identified this trend and are coming up with schemes to help car buyers secure a loan.

Buying a used car

You can procure a used vehicle from any one of these sources:

• Private individuals

• Used car dealers

• Rental car companies

• used car Leasing

Shop, Shop, Shop! until you find the car of your dreams at a price you can afford.

If you are extremely concerned about the unreliability of used cars, Certified Used
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Vehicles are the thing for you. When a vehicle is returned from a lease or traded in on the purchase of a new car, the dealership or the Automotive Company evaluates its condition. It subjects the vehicle to a rigorous inspection process, attaches an extended warranty and other benefits, and sells them at a premium to the used-car-buying public. These cars are reliable and cost less than new vehicles.

Some people shop for a good car and then buy an Extended Warranty to cover it in event of a mechanical breakdown. But in such cases, you need to check out the vehicle and negotiate the warranty rates to save yourself from shelling out money.

If you are looking for the best deal then you need to look for used car values like almost

new - two years or younger. Buying a middle-aged car (3 - 5 years old) that has been treated well by its owner could be a great deal. You could find many of these cars at a good bargain.

Must check in a used car:

• Scratches, dents or mismatched colors

• Worn out paint

• Big defects (costly) and not minor repairs

• Ripples, waves, poorly fitted panels and mismatched colors

• Rust

• The shocks - by pushing down on each corner of the car and letting go

• Tires, doors, hood, trunk, or hatchback

• Under the car for leaks

• Mileage

• Condition of the seats, windows, lights, belts, ac, and carpeting

• The brake, accelerator, and clutch

• The engine

• Funny noises, smoke, and vibrations

• Restart time, transmission etc.

• Does the odometer mileage seem to match the physical condition of the car

• Odometer for tampering

• Compare the VIN number (Vehicle Identification Number) on the dashboard with your documentation

And of course, test drive the car! If these seem a bit much, you can have the vehicle inspected by a qualified mechanic.

Pre Approval

Pre approval will help you secure the best used car loan deals and eliminate dealer pressure on the purchase of a vehicle. But before you sign up for the loan, you need to do a thorough study of the market rates, rate of interest and terms for repayment.
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Some traders offer attractive discounts on their cars if you take up one of their loans to finance your vehicle. In such cases, check the terms and conditions of the loan carefully. Look for hidden costs and focus on the rate and term. Pay attention to the annual percentage rate-yearly rate of interest that includes all of the fees and expenses paid to acquire the loan such as points, loan-processing fee, loan application fee, document preparation fee, prepaid interest etc.

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