Used Auto Loan
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Buy a used car using a used auto loan
Not all of us are rich enough to purchase a brand new auto every time we have to sell off or trade in the old model. Even with the help of an auto loan we may still find the monthly repayments too much to bear. As millions of cars come off lease every year it is no wonder that the market is flooded with a regular supply of used cars. A used car will have previous owners, but there are plenty out there that are in fantastic condition, have been looked after and have low mileage. You just have to know where to look! The important thing to note is that just because it's used you don't have to buy the car outright; there are plenty of used auto loan providers out there that can provide you with auto financing.
Let's look at where you can source for used cars and used auto loans from!
Sources of used cars
Many dealerships specialize in selling used cars and you will usually find loads of them advertising their latest deals in your local car magazine. Used cars from a dealership invariably come in good condition and you should be able to find a low mileage car with a complete service history. Just be wary of scoundrels and always invest in a vehicle history report to make sure it wasn't junked or declared a lemon in the past. You may find the used car price will be slightly inflated in comparison to buying a car privately through the classifieds. You can use a used auto loan to finance the purchase.
Classifieds – Private or person to person deals
Many people opt to purchase used cars through the classifieds in newspapers or online. This is known as a private or person to person sale as no dealer is involved. Although you can often get a cheaper auto privately, you should never purchase a car without paying for a vehicle history report as some people will try and sell you anything! If you are not mechanically minded you may also want to pay for a vehicle inspection by a qualified mechanic too. There is a used car loan known as a private or person to person used auto loan that will enable you to buy a car using this method.
Sources of used auto loans
Banks and Credit Unions
Banks and credit unions will supply you with a used auto loan. Many banks will not lend on vehicles that are over 4 or 5 years old and you will find that their APR will be higher on a used auto loan than a new car loan.
Specialist used auto loan lenders
Companies that specialize in used auto loans will probably be much cheaper than a bank or credit union but you should always compare quotes from all options available to you. You will find that most of these specialist auto lenders will have a strong online presence. The market for online used car loans has become fiercely competitive in the last few years and the APR charged is pretty comparative to that of a new auto loan.