Buying a used car is a serious financial responsibility that can impact your budget and credit rating. From making monthly payments to paying for gas, insurance and maintenance, there are many costs to consider. However, if you want to save money on a used car and potentially improve your credit rating, in-house financing may be the answer. We would like to show you several reasons why financing your car in house may be a wiser choice than obtaining a traditional loan.
Flexible Payment Options
In-house financing typically allows dealerships like ours to offer you a variety a payment options. While you may not get the lowest interest rate possible, this kind of financing, where you pay the dealership directly, can help you get a monthly payment that is generally less costly than you might get from a traditional loan. This can help you meet the monthly cost steadily, and payments that are made on time can improve your credit score over time.
Credit Score Improvement
If you have a fair credit score or have only just begun to build your credit, in-house financing can jump-start your score after you make the first few payments. Even a few points can make a difference in qualifying for major purchases, especially if you are on the cusp of fair and good credit. If you are building your credit, a higher score may eventually improve your job prospects and rental opportunities.
An Open Door to Future Good Credit
Using in-house financing to buy a used car can be the first step in establishing or rebuilding your credit. Being responsible with payments will reflect on your credit score and put you back on the road to financial wellness. This can be especially helpful if you are taking other steps to repairing your credit, such as paying off older debt.
In-house financing offers you many financial advantages if you are shopping for a used car. From helping you build credit from scratch to improving your score, you may be surprised at what it can do for you.
Buying used cars is a big step in your life and there usually is no point in rushing it. When making such a major purchase, it is a good idea to approach the decision with care. Here are some things that you can do to ensure that you’re ready to buy a car when the time comes.
Know Your Credit Score
Your credit score and history will have a big impact on the type of dealership financing you qualify for, and ultimately the type of car that you get. Keep in mind that it can sometimes take several weeks or months to get errors on your credit report straightened out so do this as soon as you can. Get Pre-approved
Dealerships usually have pretty good financing deals, and you might not have to have outstanding credit to qualify. It is usually a good idea to get pre-approved for a loan before shopping for a car so you know what your limitations are in terms of pricing. This will also give you a good starting off point for negotiations down the line.
Unload Your Current Vehicle
Decide whether you are likely to get a better deal trading your current car to a dealer or selling it through a private sale. There are pros and cons to doing it either way, of course, but it depends on what best fits your plans.
Determine Your Budget
Last but not least, figure out your budget for your new car purchase. You might get pre-approved for an amount much higher than what you are actually able to afford so it is vital that you come up with your own number for how much you can afford to spend on a car.
Buying a car is an exciting process. It can be even more fun when you take the financial steps beforehand to ensure you make a good choice and are mentally and financially prepared for it.
Sometimes it seems like cars break down at the worst times. You might not be in a great place financially when your car becomes inoperable, and buying a new car is not always possibly. When you need a car, and you have limited funds, a good used car might be the best thing for you. There is a wide-variety of used cars on the market. With a little bit of research, you might find a used car will work well with your current lifestyle.
Know Your Budget Before You Begin
Before you start your travels to dealerships, you need to consider how much money you can afford to spend on a used car. You could save a lot of money, if you pay for the car in full. If this is not possible, consider making a large down payment. Obviously, when you finance your car, the cost is more because you are paying interest each month when you make your payment. Traditionally, when you purchase a used car, rates are higher and the financing periods are usually shorter compared to purchasing new cars. One tip most financial experts offer is to never spend more than 20 percent of your take-home pay on a car.
Estimate Future Expenses
Always do research on the car you want to purchase to see if certain parts need to be replaced more frequently. You might have a particular car in mind that you’d like to buy, but if the water pump in that model has a history of failing, than you might want to consider another car. When you purchase a used car, there’s always a chance you will have to forgo funds for maintenance and upkeep. An older car obviously has more wear and tear on it than a new car. Having savings put aside is important, since you don’t want your car to cause you unnecessary debt.
If you are on the hunt for quality used cars in your area, there are some key steps to take to be sure the entire process goes well. We recommend taking these steps to ensure you get exactly what you want and spend the amount you want to in the end. The most important thing is guaranteeing the vehicle you buy is top quality. We want to make sure that happens for you, so here are the steps to remember in the process.
Consider All of the Details When It Comes to Finances
Our concern is not how much you spend, but that you spend a comfortable amount and receive the quality you deserve. This is why we recommend you figuring out your detailed budget beforehand. Calculate in everything, including the total payment of the car and any insurance that you need. Also, be sure to not make a car payment that is over 20 percent of your take-home income. This way, you will find yourself in a safe and secure ride and not in a financial hole.
Have an Inspection Done on the Car on Your Own
While all of our vehicles are thoroughly inspected and are in top condition for you before you even check them out, we recommend you taking it for an inspection on your own with someone you have history with and trust. Our goal is for you to feel like you can one hundred percent trust our vehicles and us. This is why you should take it to a mechanic you know and confirm the positive inspection results we will give you.
We are set on offering you used cars that are of the best quality around. All of our cars have been tested, driven, checked, inspected and have come out with clean results. We want you to be happy with your buy, so we recommend you take the steps above until you feel confident with the car you are considering.
When you are checking out used cars, one of the biggest advantages is the cost. These will almost always be less than the same make and model that is new. When you are paying less for a vehicle, you can pay it off faster. However, there are a few tips to make it easier to get the loan paid off so that you can eliminate your monthly payments.
Put More Money Down
Even if you put an extra $500 to $1,000 down, this is less money you have to pay back with interest. This allows you to pay your vehicle off faster and it can also save you money overall. Consider your timeline for paying off the vehicle and do the math to determine the down payment amount that fits into your plans.
Pay More With Every Payment
Add to your payment every month to make each payment larger. You can choose any amount that you can afford during that given month. For example, add an extra $50 to your payment in August and September, but when the holidays come up and money is tight, plan to pay an extra $25. Every dollar counts and works to get the loan satisfied faster.
Make an Extra Payment Every Four Months
This is relatively easy and most people are able to afford this. This cuts off three months of payment per year. If you have a two-year loan, you will pay your vehicle off in 18 months instead of the full 24. Simply divide your monthly payment by four, put this much aside and once four months is up, make the extra payment.
You can use all of these tips together so that your loan is paid off before you know it. Just talk to the dealership and see if they have any rules about paying off a loan before it is set to be complete.
If you are seeking out ways to save money in the future and watch your finances, choosing to purchase your next car used is a wise decision. Cars are not good investments and the odds of you selling any car for more than you purchased it for are quite slim. Therefore, it is important to focus on minimizing depreciation. Additionally, used cars have lower fees and insurance rates.
It is no secret that depreciation is problem when it comes to cars. When you buy a brand-new car and decide to sell it a few years later, you will be fortunate to get anything over half of what you paid for it originally. Alternatively, used cars depreciate at a much slower rate because the greatest amount of value is lost as soon as the new car is driven off the lot where it was purchased.
Lower Payments and Fees
A few of the other major advantages to opting for used cars include the lower car insurance rates and the cheaper registrations costs. Since there is less risk for insurance companies in the unfortunate case you get in an accident with a used car, they are far more likely to offer you attractive rates. You can even choose to opt out of collision coverage all together and save a significant amount over time. Lower payments essentially equate to less stress because you will not be fearful of getting in an accident and having to deal with expensive repairs of fixing your new car.
Considering used cars as opposed to new ones can be a smart financial decision. It can be hard to eliminate financial stress from your life, but choosing to go with a used car is one great way to minimize your debt. In the unfortunate case you got in a collision, having a used car can minimize costly repairs.
You’ve narrowed down your search for the perfect used car for your needs and budget and are ready to address your finance options. If you won’t be buying the car outright, you’ll need to finance it, which means paying interest. To avoid paying more than necessary for used cars, you’ll want to keep your interest rate as low as possible, which you can easily do with a few good tips.
Think About Financing Through the Dealer
While you might think financing your car through a dealer is automatically more expensive, the truth of the matter is that doing so could net you a pretty solid deal. This is because dealerships can offer incentives like zero-percent financing and other specialized low rates. Check to see what’s on the table before you think about financing elsewhere. C
onsider a Certified Pre-Owned Car
It seems counter intuitive, but older cars usually come with higher interest rates when compared to newer models. Instead of thinking you’re better off with a new model, consider the fact that dealerships sometimes have zero-percent interest specials on their certified pre-owned cars. Be sure to ask about them as you’re walking up and down the aisles checking out cars.
Consider Your Term Length
If it’s at all possible, get a car loan with the shortest term length possible. The reason for this is that a shorter term length equals a shorter repayment length, which means a lower amount of interest paid over the life of your loan. Another great thing about getting a term length as short as possible is that you don’t have to worry as much about being upside down on your loan, which is what happens when you owe more on your car than it’s worth.
As you can see, there are several things you can do to keep the interest rate low on your used car. Be sure to put these tips to good use.
Shopping for used cars can be a daunting experience. With so many makes and models to choose from and with so many ways to finance your vehicle, going it alone can make you feel less confident than you normally might. To make your experience more pleasant, we have some tips about who you might bring along as you shop and take test drives, as this may help you make a more confident purchasing decision.
Having your spouse along with you as you shop for a used car might make you feel comfortable in terms of helping you decide what kind of car best suits your needs as a couple or a family. You can also bring them to help you keep track of your paperwork and for moral support as well, especially if this is your first time buying a used car on your own.
If you have a good friend who is a mechanic, they can be an invaluable individual to have along when you’re browsing used cars. You can ask them questions about which models have the best track record when it comes to safety and reliability. Taking them on test drives might also help you understand and identify any unfamiliar noises you might hear.
Your Adult Children
Having your adult children accompany you on your used car shopping trips can be extremely helpful, especially if you have not purchased a vehicle in some time and are now a senior. They can help you make decisions about which finance option is best for your budget and assist with filling out paperwork if you find yourself running low on energy. If you are not familiar with today’s technology, your kids can help a dealer explain features such as GPS, Bluetooth capability and more.
Shopping for used cars can sometimes feel overwhelming if you go it alone. Bringing along a spouse or a loved one can help you feel more confident that you are getting the most for your money.
There are numerous reasons to be excited about buying and owning a used car – the cause that is most compelling can vary from one individual to the next. The motivations for purchasing a pre-owned vehicle can be lumped into two main categories: style preference and budget. As for people who are looking to save some money on getting an automobile, the majority of them can meet this goal by preferring to drive cars, SUVs, vans, or trucks that have had at least one prior owner. The benefit of style might not be something that requires explaining, as entire communities have been built around classic and antique enthusiasts.
The Affordability Is Superb
Many people would be quick to take advantage of any opportunity to save thousands of dollars – especially if there needs can be met just the same as if they had paid the higher price. Buying used cars is a strategy that can be deployed in order to protect the balance of your bank account by allowing you to satisfy your need for personal or family transportation without paying much. In many instances, the high level of affordability inherent to pre-owned autos enables buyers to get a better car than they originally thought they would be able to buy.
You Get to Own Your Favorite Model
While a lot of people pick the vehicles they purchase purely for budget and functionality, there are still many who get a particular car because it is the one that best matches up with their tastes. For car enthusiasts, lots full of used cars is where they have the most pleasure shopping for their next automobile – the Chevy Camaro and the Ford Mustang are prime examples of cars often purchased used because of the performance and visual appeal of earlier models.
The list of benefits of buying preowned can be quite long, but a great percentage of the people who purchase used find that either their taste
Buying a used car from a dealer has a number of advantages of over getting a car from a private seller. For one thing, our reputation is on the line with every car we sell, which isn’t the case for an individual. Our business model is built on satisfying the customer, so that we get repeat business and positive word of mouth. This goodwill allows us to sell more used cars, which is our goal.
Another powerful advantage we have is convenience. Where else can you find a large selection of vehicles for sale than on a dealership lot? We carry everything from cars that are a year-old to vehicles that have been around a bit longer, giving you a variety of price points to choose from. We also offer a range of makes and models to test drive and kick the wheels a bit.
There’s a lot more, too. We offer financing packages that allow you to drive home the car of your dreams. We also are often able to provide lower interest rates than you might find on your own. Our cars have all been inspected by mechanics; they don’t go out on the lot until they have been cleaned and fixed of any mechanical issues. You won’t drive from our lot only to have the bumper fall off.
Finally, we handle all of the paperwork for your new set of wheels. We will set you up with registration and title so you don’t have to do the work yourself. When it comes to buying used cars, we are the place to go.