How to Get a Used Car Loan   by Paul Winn

in Finance / Loans    (submitted 2011-02-23)

Purchasing a used car is an option many like because it can save a nice sum of money. But, before purchasing a used car, do some research on how to get a good and effective used car loan.

Checkup of a Car
First, ask the seller of the used car you’re interested in to pay for a checkup of the car. This is something you would do only if you’re buying from another person; a dealer usually has a sheet of information on the car and its prior owner. If the owner of the car refuses to do this, then there is reason to suspect that the car may not be worthwhile. It is important when buying a used car to see that it is in good shape--especially before the loan process begins. Next, check out your credit report online. This can be found at AnnualCreditReport.com. This is a secure site and knowing what is on your report before you begin the car loan process, will give you an edge in dealing.

Banks and Credit Unions
Next, go to several banks or credit unions and find out what your options are with used car loans. It is a known fact that interest rates are different with lenders and of course, your credit rate plays an important role also when dealing. If you’re dealing with an individual, there are several options for a car loan. This kind of loan gives you the opportunity to pay in full for the car and then repay the lender in monthly payments. However, some lenders charge higher rates for this kind of loan.

And, be sure to get an extended warranty for your used car. It is advised to get a good price on a warranty and be careful of used car dealers who might charge you a high fee for a warranty. So, again do some research before buying.

About the Author

Paul writes for the working man. No one wants to get ripped off and Paul helps people make wise financial decisions. He specializes in car loans and other forms of personal credit. Don't lose money. Make a smart choice.