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Things You Should Know About Getting a Used Car Auto Loan
If you're looking to purchase a pre-owned car, a few used car auto loan tips can help you save money on the price of the car and loan. Before you buy a used car, you need to do some research. First you want to research the value of the car you are interested in. You can consult Kelley's Blue Book get this information. Be sure to provide as much detail about the car as possible to ensure you get the most accurate data. You also need to research interest rates. The interest rate of a used car will likely be higher than the rat of a new car. Depending on the mileage, you should expect a shorter term loan such as 36 or 48 months.
The research you do for a used car is very important because you don't want to pay $9,000.00, for a car that's only worth $7,000.00. There is more room for negotiation for used cars because there is usually a bigger dealer mark up. If you know approximately what the dealer paid for the car, the stronger negotiating power you have at the table.
Because used cars are unique, it can be difficult to find vehicles with similar mileage, features, and condition at multiple places. The loan terms for a Honda Civic at one place can be different for the same car at another. For instance, a lender may only be willing to offer a used car auto loan at a 24 month term on a 100,000 mile car; but offer a 48 month term on a 50,000 mile car. These terms will have an effect on your interest rate and monthly payment. These are things to keep in mind when shopping for a used car auto loan.
If you get a used car auto loan from a dealership, they will ask if you want an extended warranty. If you have poor credit, the lender may insist that you get a warranty as a condition of the loan. The warranty can be paid separately or financed with the car. If the factory warranty is close to being expired, you may want to consider it. You can research warranty companies and shop for comparison.
About the Author
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