Car Loan Tips

Used Car Loan Tips

Know what you can afford. Your car loan will last between 36 and 60 months. So, car loan tip #1 is to understand what lenders consider when determining how much you can borrow.

Research the car you want to buy. There are plenty of online car research and car price resources. When it comes time to buy you will want to review the car loan advice in our used car guide. At the outset, though, you are primarily interested in finding out if you can afford the payments.

Run the numbers. While few people like preparing a budget, knowing what payment you can afford and what rate to expect are huge used car loan tips. Particularly as used car loan rates are slightly higer than those for new cars. For more information on used car loan rates, check out Page Two of our car loan calculator.

Understand used car dealers. Read aobut working with used car dealers here. When it comes time to negotiate terms, be ready for the Finance & Insurance (F&I) office. Our car loan advice page walks you step by step from setting your overall budget to negotiating payment terms with the F&I Manager.

Competition is good. Review our used car loan advice page for tips and advice on how to shop for car loans and what to focus on. Avoid the common trap of the used car shopper: focusing on the payment as doing so may cost you thousands over the term of the loan. We suggest you apply for a car loan through SmartCarCredit. It's a great way to get multiple auto loan quotes regardless of your credit history.

Consider dealer financing. If you have really bad credit, buy-here-pay-here lots and auto dealer financing may be your best bet to get into a car. Remember, this used car tip though: You can always refinance after demonstrating a solid repayment history.

Do you have good credit?

Less than perfect credit?

Related Links

• Want bad credit auto loan options? Review our bad credit auto loan page.

• Understand your alternatives. Get auto loan quotes here.

• Know how much you can afford. Calculate your payment and loan amount.

Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.