Features of used car loans!
This article is very useful for me.
The loans offered for pre-owned cars differ slightly from those offered for new cars. The basic difference between new Car Loans and Used Car Loans is that the age of the car and its model play a key role in determining the financial intricacies of the loan.
And, unlike new car financing where certain lenders offer up to 100% of the car value, a used car financer usually provides only 70% to 90% of the car value.
You can easily apply for a Used Car Loan online through BankBazaar’s Used Car Loan portal, which offers customers a fantastic range of loan options that are tailor-made to meet all your requirements.
You can zero in on a Used Car Loan of your choice by browsing through and comparing different loan parameters for pre-owned cars such as interest rates, documentation required, eligibility conditions, fees and charges and more.
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Here are five basic steps you will likely follow in the process of securing a loan for your Used Car Loan.
- Determine What You Can Afford
Get out a piece of paper and work out a realistic budget that tells you what you can afford in terms of a monthly payment. Then decide how long you are willing to have your loan last — the term of your loan. Next, determine the amount of the down payment you plan to make. The result will tell you how much car you can afford to buy.
- Check Your Credit Score
It’s important to know exactly where you stand in regard to your credit score before talking to lenders. Lenders rely on credit reports and scores when determining loan interest rates and terms. The higher your credit score, the better position you will be in to lock in a lower rate.
- Shop Around for the Best Loan Deal
This is important since rates and terms will vary, sometimes considerably, between lenders. It’s also important to look for the best loan deal before heading out to shop for a car.
- Get Approved
Getting pre-approved for your loan means that you’ve set your limits before setting foot in a dealer’s showroom where your emotions might get the best of you and your pocketbook. The best places to look for a pre-approved loan are banks and credit unions.
- Shop for Your Car
Now it’s time to visit your local auto dealers. Find the exact car you want. Then let your lender know the year, make, model, and Vehicle Identification Number. You will also need to purchase car insurance as soon as possible.Most dealers will not let you drive away without showing proof of car insurance.