Choosing Financing for a Used Car

Finding financing for a used car can be a daunting task. So many lenders, so many used car finance products, it can be difficult to decide. We’re going to give you a few pointers to help with the process and make shopping for financing for a used car a little easier. At UsedCarsTampa.com we strive to provide you with great information so your car buying experience is a joyful one.

 

If you’re shopping for a pre-owned car from a dealership you will find plenty of finance options available. An important side note, be sure you know your credit score before you shop for financing for a used car. All automotive financing is based in part by your credit score. It will dictate your rate and terms. Get your score directly from Trans Union™, Equifax™ and Experian™. So called credit companies can’t give you as accurate a score as going directly to the source.

 

You will also want to know your credit score to give you bargaining power. The higher your score the lower rate you can qualify for. Lower scores will raise rates, the question is how much. Ask questions about your financing, make sure you’re getting the best terms and rates available to you. Don’t allow every dealer to pull your credit, give them your score and base payments on that until you’re ready to sign, don’t put multiple inquires on your credit.

 

What to do if your credit is less than perfect. Bad things can happen to good folks. The good news is you can re-establish your good credit. Be prepared for a high rate of interest. Keep in mind this is a loan that you will want to pay on long enough to get your credit back in shape. This is not a used car you want to pay off. Two years of good pay history, and trade out. You could refinance theoretically with your own bank or credit union. Also be realistic have a down payment, the more you can put down the easier time you will have getting financed. Tampa has great dealers that can assist you along the way.

 

Choosing an extended warranty and other finance products when you’re signing paperwork, what to choose and “do I need it”? Protecting your investment is never a bad thing. If the used car you’re choosing is still under the manufacturer’s warranty it will qualify for a new car extended warranty. This means you will pay less in price for these types of plans. Have the finance manager answer all your questions and feel comfortable before making a decision. Gap insurance is another product that pays off the difference between fair-market-value vs. your payoff should your car become a total insurance loss. Simply if the insurance is paying less than what you owe, there is a gap. Gap insurance pays that portion.

 

Credit insurance and disability coverage, check with your own insurance agent to see if you have overlapping coverage before you purchase these products.

 

Choosing these products is solely your decision. Ask questions and make sure you have a clear understanding of what you’re buying. Protecting yourself and your investment make sure you’re informed before you sign on the dotted line.

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