Used cars can offer big savings over new ones, but you might still need to finance your purchase.The following tips will help you avoid common pitfalls and paying more than you have to when buying and financing a used car.
Check the vehicle history
Check the vehicle history report for any car that you are serious about buying. The report will inform you about flood, collision, crash damage, or any other past problems with the vehicle.
It’s a good idea to check your credit score periodically to see if there are any areas that need improvement. The best interest rates on loans, generally go to those with the best credit.
Check your Credit score
Get Pre-approved
Getting pre-approved gives you a baseline from which to start. It can help you narrow down your car search once you have been approved for a desired amount.
Put as much money down as you can comfortably afford. The more you pay upfront, the less money you’ll lose to interest payments.
Make a downpayment
Avoid long-term loans
A loan that lasts 60 months may keep your monthly payments low, but you’ll pay more in the long run, and will probably end up paying a higher rate.
Inevitably, all cars need regular maintenance to ensure their quality and safety. It’s a good idea to come up with a rough annual maintenance budget based on a car’s age and mileage so that you are financially prepared.