Can You Finance a Used Vehicle?

How Can I Finance a Used Vehicle?

Before you jump into the used car financing process, there are a few things you should keep in mind. In order to secure an auto loan that matches the needs of your budget, here are some tips that’ll help you finance a used vehicle:

1. Research Your Credit History/Score: Knowing your credit history can help you get a better understanding of the auto loan you can look forward to. Your credit score is based on how often you make payments on time and the standing of your credit accounts.

There are plenty of resources to check your credit score, which can range between 300 and 850, and if you’re unhappy with your score, there are several ways to raise it. Make sure you’re only opening necessary credit accounts, making payments on time, and keeping your credit card balances low.

2. Keep Your Loan Term Short: Car loans can last anywhere between 24 and 84 months, and the length of your loan term can come with certain benefits.

For example, a longer term can mean lower monthly payments. However, it can also result in higher interest rates. A short-term loan, though, can result in much lower interest rates. Although you’ll be paying higher monthly payments, lower interest rates will be much better for you down the road.

3. Down Payments: Putting down an initial payment, somewhere between 10 to 20% of the total vehicle cost, can go a long way. This down payment can help you both lower your monthly payments over the course of your auto loan and even help you secure a better loan at the beginning.

These down payments can be made in cash, as well as your trade-in’s value. The latter means that the value of your current vehicle can go toward the payments of your next ride.

Used Vehicle Financing Resources

In order to make your used car financing journey even easier, our team also provides a slew of online resources that can lend a hand. To start, our finance application can help you get pre-approved for an auto loan well before you visit our dealership.

We also have a payment calculator that can make a significant impact on your buying journey. With it, you can estimate the monthly payments on your used car based on the vehicle price, interest rate, loan term, and down payment. You can even input your old vehicle’s trade-in value.

Speaking of which, there’s also our Value Your Trade-In tool. This can help you find out exactly how much your old car is worth, and how much of its value could be put toward the payments of your next used car.