Smart Used Car Financing Tips to Help You Get a Good Deal
You’ve found the perfect used car at Preston Ford of Keller. Now, let’s make it yours! Navigating car financing can be a bit daunting, but with these helpful tips, you’ll be cruising down the road in your new-to-you ride in no time. Keep reading to discover the best way to finance a used car and get pre-approved for financing at Preston Ford of Keller today!
Credit Score: Your Key to a Great Car Loan
A good credit score is a key player in our used car financing tips, as it can lead to lower interest rates and better loan terms. Consider your credit score to act as your financial reputation. Lenders often view it as a sign of responsible borrowing, which means they’re more likely to offer you favorable deals. An excellent credit score can open doors to lower interest rates, saving you money in the long run. On the other hand, a lower credit score could potentially result in higher interest rates, making your monthly payments more expensive.
Preparing for Financing: A Step-by-Step Guide
Before you start shopping for a used car, it’s essential to get your finances in order. Begin by creating a budget that outlines how much you can alot for monthly car payments. Experts suggest keeping your car payment to around 10-15% of your net income. Use an auto loan calculator to get a better grasp of your budget and loan terms. Another smart move is to get pre-approved for a used car loan before you start your search. Getting pre-approval for financing gives you more bargaining power when negotiating both the car’s price and the financing terms.
Shopping Around & Comparing Options
Once you’re financially prepared, it’s time to start shopping for your car. Research safe and reliable models that match your needs and budget. Create a list of your top five options and compare reviews and safety ratings. Consider looking at our certified pre-owned vehicles for added peace of mind and extra perks like:
- AutoCheck® Vehicle History Report
- Full tank of gas
- Two sets of keys
- Five-day 300-mile exchange
- Available extended service contracts
- Preston Lifetime Engine Guarantee
How Long Can I Finance a Used Car?
Typically, used car loans last anywhere around 36 to 72 months. But as more people are turning to pre-owned vehicles, lenders have been offering longer financing terms. Now, you might find loans that extend to 84 months or even longer. It’s important to note that while longer terms can lower your monthly payments, they can also increase the total amount of interest you pay over the life of the loan.
Understanding Your Car’s Past: Vehicle History Reports
Knowing a car’s history can help you make an informed buying decision. At Preston Ford of Keller, our free vehicle history reports gives you peace of mind, which is just one of the many perks of the Preston Pre-Owned Program. Our inventory includes AutoCheck® Vehicle History Reports that provide detailed information about the car’s past. You’ll have access to details like accident reports, title and registration data, and more. This transparency ensures you have a complete picture of the car’s condition before you buy.
Finalizing the Purchase
Before you drive off the lot in your new-to-you car, it’s crucial to carefully review and understand all the loan terms. Here’s what you need to do:
Read Every Document: Take your time to read through all the loan and purchase documents.
Check for Accuracy: Verify that the interest rate, loan amount, and other details are correct.
Ask Questions: If you have any questions or uncertainties, don’t hesitate to ask the salesperson for clarification.
By reviewing and understanding the paperwork, you’ll ensure a smooth and hassle-free car-buying experience.
Bonus Tips for Success
Check Your Credit: Get a free credit report to see where you stand. A stellar credit score can aid you in negotiating better terms. Fill out an online credit application here!
Do Your Research: Know the fair market value of the car you want to compare prices.
Save Up for a Down Payment: A larger down payment sum means a smaller loan, which can then lead to lower monthly payments and interest rates.
Consider a Cosigner: A good credit cosigner can improve your chances of getting approved and getting a better interest rate.
Map Your Payments: Need a better visual of your financing? Check out our handy online payment calculator to account for your vehicle expenses.
Stress-Free Car Financing at Preston Ford of Keller
At Preston Ford of Keller, we believe buying a car should be a simple and enjoyable experience. So along with our best used car financing tips, we supply a range of tools and resources to make the process as easy as possible. Our team is here to guide you through the process, from picking the perfect pre-owned vehicle to securing the best financing options. With our wide selection of high-quality pre-owned cars, you’re guaranteed to find the perfect fit for your needs and budget. You’ll also gain access to our wonderful Preston Pre-Owned Program, which offers three tiers: Gold, Silver, and Bronze. Each tier comes with our Preston Lifetime Engine Guarantee, ensuring your peace of mind. Put our used car financing tips to good use, visit our dealership to explore our inventory and discover the benefits of each tier!
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