Finance Tips When Buying Used Cars

Buying a used car can be a challenge for some people. You’re not sure what you’re getting into, fast-talking salespeople talk you into stuff you don’t need, and you might feel a bit confused. Before heading to the dealership to choose the used vehicle that you’ll want to drive home, spend some time preparing yourself. Once you feel that you’re ready to make your purchase, let the team at South Oak help you choose the model that will fit you and your lifestyle.  In the meantime, utilize these tips to get ready to buy your used car.

Know Your Credit Score

You can get a car loan even if you have bad credit but you’ll pay a higher interest rate.  Know what your credit score is. If you have a low score, you might want to work on improving your score before buying a used car. It’s important you know what challenges will face you when you arrive at the dealership.

Get Loan Quotes

South Oak has a financing department that can help you find the deal you need, but you can also check with your bank or credit union to see if you qualify for financing through them. Having pre-approved financing can be helpful in closing the sale and making it easier for you to have the used car you want to drive.

Keep the Loan Term Short

If your budget can fit it, you should pay as high a car payment as you can each month to make your loan term shorter. The less time you have to pay on your loan, the less you pay in interest. Paying off the loan faster is always a good thing. This is certainly true with used cars that might not have much value when you reach the end of your loan.

Have as Large a Down Payment as You Can

The more money you can put down on the vehicle, the lower your payments will be and the better your interest rate could be. A large down payment shows your interest and investment in the vehicle which shows a financing institution that you’re committed to paying off the loan in the time expected. Save some money with a larger down payment.

Pay Other Fees in Cash

Other fees for a used car include dealership fees, documentation fees, sales tax, and licensing fees. Pay these fees in cash instead of having them included in your loan. This allows you to avoid paying interest on sales tax or the initial licensing of the vehicle. Take these fees out of your loan by paying them in cash.

See the Experts at South Oak

Avoid the challenges of visiting a dealership that doesn’t seem to have your best interests in mind. The team at South Oak offers easy financing, no-pressure sales, and understandable terms. Express your desires to them and take as long as you need to when making the right choice to buy a used car.