Used Car Loans - 3 Tips For Financing Your
Used Vehicle Online
by Carrie Reeder
Financing the purchase of a used vehicle can be done through
the convenience of online car loan lenders. Through their websites
you can request quotes, compare terms, and even apply online.
Online car loan lenders save you time and money by making financing
shopping easy. The following three tips will ensure that you
find the best financing for your vehicle purchase.
1. Request Quotes
It is easy to compare rates online, but you really need to request
quotes to do real comparison. You should compare car loans much
like a mortgage. A difference as little as $17.00 a month can
save you over $1000 on a 60 month loan. Some lenders charge
fees, so watch for those. Sometimes small fees up front will
save you money through lower interest payments over the course
of your loan.
To find low rates consider using a car loan broker. They work
with several different lenders to bring you multiple offers
to choose from. You can also request quotes from individual
lender websites. With either type of site, you will receive
your quote instantly, enabling you to make a quick comparison.
2. Compare Terms
It is equally important to the compare terms of your car loan.
The longer loan term you choose, the more you will pay in interest.
However, longer loans also have smaller monthly payments. You
will also want to look at fees that may be associated with early
repayment or late payments.
Another factor to consider is increasing your down payment to
20% of the vehicle's value. In some cases, this can qualify
you for a lower rate.
3. Get Prequalified
To gain added leverage in you car purchase get prequalified
for you car loan. By being prequalified, you get a blank check
by FedEx to go shopping with. You can use it to purchase a vehicle
from a dealership or individual.
In either case, you have the advantage as a cash buyer. There
is no question about your credit history, so there is the incentive
for the seller to close the deal. Take this advantage by negotiating
a lower price.
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an
informational website about various types of loans. To view
our list of recommended auto finance companies online, visit
this page: http://www.abcloanguide.com/autoloans.shtml