Tips for Financing a Used Car

However, there are pitfalls to avoid, especially if you're looking to finance the purchase of a used vehicle. Explore some important information, tips, and advice related to financing a used car, and learn where you can find the best incentives and options for your next car purchase.

Financing a Used Car

The first thing you need to understand is that any incentives and options offered when financing a used car are going to be significantly different than those offered for new car purchases. It's important to ask your dealer or seller what-if any-offers and deals are available for used car purchases. Never assume you're going to get the same deals you see on new vehicles. The major advantage to used car financing is the lower overall cost.

How Your Credit Factors In

Credit will likely pay a main role in used car loans than in new. A new car is a more valuable piece of collateral against which to place a lien than a used car, which means you'll need to carefully monitor your credit history, your debt-to-income balance, and your payment history to be sure you can qualify. Get a free annual copy of each of your credit reports and work on making them as squeaky clean as possible.

 

Very often there are beneficial reasons to finance through a dealership. You could get cash back, discounts, special rates, or other incentives that financial institutions can't give you. On the other hand, you might be more comfortable dealing with your local credit union who may have their own offers. Do your homework and investigate your options.

Negotiate Price, Not Payments

This is a vital piece of advice that far too many people don't think about. Don't talk about monthly payments during the negotiation process. Just because you can get a lower payment doesn't necessarily mean you're getting the best deal.

 

Negotiate down your total cost, then figure out how far out you want to finance it. Remember, financing a used car for a long time can cost you money in repairs and maintenance down the road. Try to get a low overall price and finance for just a few years.

Finance Your Used Car at Fred Beans

At Fred Beans Used, not only do we have a vast inventory of reliable certified pre-owned vehicles from a range of makes and models, we offer impressive deals and finance incentives. For more information or to take a test drive in the Flemington, Boyertown, and Doylestown area, just stop into our showroom and talk to one of our customer service specialists today!