Getting a Used Car Loan

Getting a used car loan is not much different than a new car loan. But with that being said, you will notice some differences when you begin the application process. For this reason, you will want to make sure that you take your time so that you do not make a mistake that could put you or your car at jeopardy.

The biggest difference between a new and used car loan is the term that is available. For most new cars, you can usually get a term of up to 84 months or seven years. But with a used car loan this is never the case. Generally speaking, most used car loan lenders will only extend you a term of up to 60 months or five years. This may not be long enough for you to get the payment you want, which could lead to a change of heart.

Additionally, you should be aware that used car loan interest rates are usually higher than their new car loan counterparts. What does higher mean, you may ask? This is nothing to be too concerned with, but you should expect to pay an extra half to one full percentage point. Of course, this can add up over time so make sure that you are comfortable with this.

As you can see, the term and interest rate are what set used car loans apart from new car loans. Are you confident that you can make these details work to your advantage? Most people can because used cars usually cost less than newer ones. As long as you are aware of what goes into getting a used car loan, you should be just fine when moving forward with the application process.