Pre-Qualify for Car Loans

Ironically, decent used car finance options can occasionally be more difficult to find than those for new cars.

Purchasing used cars does little to stimulate economies: Used cars don’t create jobs or maintain employment. In contrast, buying a new car does both of those, which is why lenders prefer new car loans over those for used cars.

Your credit history and reliability play a large part in the amount approved and the interest rate offered. Keep your credit report as clean as possible. Pay bills on time and pay them off early whenever possible.

When a used car is your goal and not a new car, you still have financing options. Sellers and lenders would rather find a way to get you into that used car over seeing you walk away empty-handed.

The seller is particularly motivated in finding you financing you can accept. Both the seller and prospective lenders will check your credit score, so be prepared for that. The seller may have to attempt financing with more than one lending institution, but when you sign the loan contract, the seller will be paid for the sale. Commission positions depend on your buying a car, not applying for a loan.

If possible, pre-qualify yourself with your bank before you go looking for a car. Know how much you have available before you step onto any car lot.