Financing A Used Car
Buying a used car from the dealership leaves you open to dealership
'tricks' to get more money out of you than the vehicle is worth, but what about when you need to refinance your
car loan?
Getting a good deal on a used car from a car dealership is not as easy as getting a good deal on a used
car from a private seller. Part of the reason for this is financing:
To finance or refinance a car loan with a dealer is putting you
onto their 'turf'. Now their finance and/or refinance expert can work you over, because they have something you
need and you can't pay cash for it.
Car Refinance
Scams
When financing or refinancing a used car, make sure
you:
-
Get your own credit report and bring it with you to the
dealership.
-
Never pay a cash deposit for your financing loan because if the deal goes bad, your
deposit is history.
-
If you are a recent college graduate, don’t apply for a car loan until you have been
employed for at least 6 months
-
Apply for your loan online so you can help avoid getting ripped off.
This is easier to do anyway because you aren't getting
pressured by the dealership in person! Just don't look at one site---check 2 or 3 to
compare.
-
Learn to fix your credit before you apply for a loan. Get your credit score to at
least 680 first.
-
Pay off or pay down to a low balance your credit card debts before you look for a
new car.
-
If you have recently moved, wait 6 months or more before applying for a loan.
If you move a lot, they will not trust that they can keep track of your whereabouts if you missed
a payment or two.
Of course, having been approved for a loan
in the past helps. This will show on your credit report.
Financing or refinancing a used car can be a money-saving strategy for you.
Just make sure you do your homework and apply the above tips.
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