How to Finance a Used Vehicle

Buying a used car is a less expensive way to own a vehicle without paying extremely high costs for the vehicle. When financing used vehicles that are only a year or two old and have retained their value, the problem is that buyers will need large loans, which can be difficult to obtain unless they have excellent credit. Fortunately, financing used vehicle is not uncommon and there are loans available to most consumers that want to buy a used car.

Instructions

1

Get a copy of your credit score and credit report. Finding the best available financing options requires knowing which options are attainable and which are not based on your credit.

2

Find out what financing options are available through the car dealership. Most used car dealerships will have a few options available for financing purposes. These might not always be the best options, especially for those with bad credit scores, but it is convenient for some to obtain the loan through the dealership.

3

Talk to local lenders, such as banks or private lenders for auto loans, to find out which options are offered outside the dealership. This is especially important for those with bad credit because it gives more options and often can result in lower interest rates. Shopping around for good financing of the vehicle is ultimately less costly than not looking.

4

Give the financier a copy of a picture ID, such as a drivers license or state ID, and permission to access a copy of your credit report. Most financiers will require proof of income in the form of pay stubs, copies of the previous years taxes or similar items before running a credit check.

5

Obtain the loan that has the best interest rate available and that offers the amount needed for the vehicle.