What You Should Remember When Obtaining Used Auto Financing

2007-03-08 10:33:40

( Automobiles )



Financing a vehicle that has a previous owner is more difficult to obtain compared to a new auto financing scheme. Used auto financing is however still available for individuals who do not have adequate funds to purchase a second hand vehicle.

Below are some points to think about when considering a used auto financing scheme:

To receive the best interest rates and credit terms, you should keep all of your debt payments up to date. Higher interest rates are provided for auto financing if you have an adverse credit history. If this cannot be avoided, you may nominate a co-signer or co-borrower, who becomes responsible for your monthly payments in the event you are unable to meet your payments. A lower interest rate can only be offered in this case, if your co-signer has a good credit record.

Be prepared to pay some form of down payment when availing of used auto financing. A certain percentage of the total cost of your second hand vehicle needs to be paid, but you can pay more than required to avail of a lower interest rate.

Obtaining pre-approved auto financing before purchasing a used vehicle helps you determine how much you can afford to pay for a second hand vehicle. Some car dealerships provide better repayment terms with available pre-approved financing.

Before committing yourself to a lender, ensure that you read and understand all the terms and conditions of the financing scheme.

Applications for used auto financing can be obtained from banks, credit unions or lending companies; however, these institutions offer varying interest rates. It is therefore strongly recommended that you approach several lenders and make a comparison before committing to one lender. Reputable lenders such as HSBC Auto Financing, Acura Financing and Chase Automotive Financing should be chosen. Alternatively, and more conveniently, used auto financing can also be obtained via the Internet.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.