How to Get a Low Interest Loan on a Used Car?
If you've been thinking about taking out a loan to buy a car, you'll have seen plenty of adverts offering 0% deals on brand new models. Unfortunately, these crowd-pulling deals are very rarely available on used cars.
Used car loan rates are often a little higher than for new vehicles. This is because the value of a used car can vary widely depending on its condition, and so lending on it is more of a risk.
But don't be discouraged. If you're looking to buy a used car, you can still get a great deal on finance.
The most effective route is usually to get an inhouse loan, where both the car and the finance are provided by the same company in one easy package. To get an inhouse deal at a low rate, follow these six simple steps.
1) Check Your Credit Rating
The biggest single influence on a loan rate is your credit rating. Your first step is to see exactly where you stand by getting a free copy of your report from the two major Canadian credit agencies, Equifax and TransUnion.
If your record contains any mistakes, ask for them to be corrected. If you see any small debts you didn't know you had, pay them off if you can. Every little thing you can do to clean up your rating will help you get a lower rate car loan.
2) Decide on a Down Payment
It's easier to get low interest used car loans if you can provide a down payment. Ideally, you should put down a payment of 20 percent of the car's cost, but loans are still available with a lower amount or even none at all.
3) Set a Monthly Budget
Decide how much you can afford to pay each month. Be realistic: you don't want to make your loan repayments a constant struggle. Also, don't forget about the costs of car insurance and fuel, which can mount up quickly.
Then, use an online payment calculator tool to see how much you may be able to spend in total on your car.
4) Research the Market
Once you have your total figure, check a few online car sales sites to see which models and ages are within your range. Make a list of the general kinds of cars you may be interested in buying.
5) Check Inhouse Inventory
Check which vehicles we have available inhouse to combine with used car loans in Edmonton. Browse until you find the one which best fits your budget and preferences.
6) Apply Online for Fast Approval
Lastly, use the fast application form to send your details and set the application process moving. Loans are approved in 24 hours or less with a high approval rate, regardless of credit score.
When you take out a loan for a used car, you won't see the same 0% offers advertised as for brand-new cars. But that doesn't mean low interest used car loans aren't available. Applying successfully just means following these simple steps to get the car you want at a price you can afford.