Tips for Financing a Used Car

November 1st, 2016 by

While finding financing for a used car isn’t that big of a deal, if you’re not used to dealing with the whole process, it can be a bit daunting. To help you during your car shopping adventure near West Palm Beach, Greenacres, and Boca Raton, our team at Braman Honda of Palm Beach has put together a few helpful tips for you.

Check out our list of tips for financing a used car purchase below then shop our online inventory.

Tips for Financing a Used Car

There are several ways in which any car buyer can purchase a used car. Here are the top 3 most common means of funding:

  • Purchase a used car outright
  • Get financing from a private bank or credit union
  • Get financing from the used car dealership

While the first option is ideal, it’s not possible for many used car buyers, which means you’re looking at getting financing from a private bank/credit union or at your local used car dealership near Boca Raton, Greenacres, and West Palm Beach, FL. Either way, there are a few things you’ll want to keep in mind during the process.

Lenders Look at Credit History to Determine Risk

That means they’re looking at your credit report and credit score. While the credit score is less important these days, it’s telling about what kind of financial history you have so lenders will look there first. If your score is too low, they may not consider you for a traditional loan and will instead offer special financing options.

Special Financing is Available for Buyers with Bad Credit

If your financial history hasn’t been great due to life circumstances or other reasons, there are still options available to you. Lenders understand that having a vehicle is an important part of getting back on your feet and will be more likely to lend to you with a special financing loan.

These are high-risk loans that usually involve a higher interest rate so you get a lower monthly payment. If you make your payments on time and in full, you can improve your credit history and your credit score.

Shop Around for the Best Rates Just Like You Do for the Car

When you’re shopping for your next vehicle, you’re looking to get a deal. You should be doing the same thing with your auto loan. If you’re shopping around for the best rate, don’t be afraid to put in a couple of applications.

But do them within a week or two so they come on your score as just one hard mark. If you spread them out over several weeks or months, you’ll get several hard marks against your credit and they’ll be counted against you.

Start Shopping for a Used Car

Once you’ve figured out how you’re going to finance your next used car purchase, it’s time to shop for the car. Check out the huge inventory of used and certified pre-owned vehicles in the online inventory at Braman Honda of Palm Beach today to get started.

Posted in Finance, Used Cars