Your Guide To A Good Used Car Finance Deal
When you are wanting to buy a new car, a used car is a great option if you want to save a lot of money. When you do a used car finance deal, you will have more room to negotiate, especially if it is a private sale. When you don’t have the full purchase price amount available, there will be a variety of financing options to consider. Carefully consider each car finance option before settling on the right one for you and your wallet.
Quick Guide To Used Car Finance Loans
Car finance loans on used vehicles will be different than with new ones. Financial institutions have certain restrictions when it comes to the age and value of the vehicle you are interested in before being able to qualify for the loan. As an example, some lenders may only offer a car finance loan on a used car for periods of two to five years. It should be kept in mind, however, the interest rates on used car loans are typically higher than on new car loans because the quality of the vehicle is much less assured.
When you purchase a used vehicle, you will need to provide details of that vehicle when you apply for a loan. If you know the exact type of vehicle you are looking to purchase, you may be able to get pre-approved for a used Car Finance Stratton loan from the lender in order to secure the financing before you actually buy. After being approved for the used car loan, you will agree to repay it within the specified loan term.
The loan term that you will be approved for will vary between lenders. However, most terms are between one and seven years for non-fixed rate loans. For fixed-rate used car loans, the loan term is generally between one and five years. Depending on the terms of your specific loan, you may be able to make the additional payments or pay off the loan early without penalty. If you make no additional repayments to the loan, you will continue making payments until the specified due date on the original loan application.
Steps To Finding The Best Car Finance Deal
Finding the right finance deal is almost as important as finding the perfect car to purchase. When looking for the right loan, there are a few things to consider. The interest rate is the first thing to consider. This is the rate offered by the lender and should be meticulously compared between the lenders you are considering. The interest rates are typically higher on used car loans as opposed to new car loans. Secondly, you need to find out what the lender’s fees are on used car loans. These fees may include administration fees, early termination fees and loan management fees. Lastly, you should figure out how flexible your loan may be. Ask a lender if you are able to make lump-sum payments during your loan term or additional payments. You will want to know if you will be able to use a redraw facility if you make additional repayments without any restrictions.