When you finally find the used vehicle you want at a car dealership, it’s time to discuss financing with an auto loan. This will allow you to build equity with the car, and there will be no limits on how many miles you can drive with it. Since financing a used vehicle is different from a new vehicle, here are some helpful tips. 

A Guide to Financing a Used Car

1. Know Your Credit Score Ahead of Time

The higher your credit score is, the lower your interest rates will be. However, even those with scores below 700 can still get approved for a car loan. 

2. Get a Co-Signer

If you’re a young driver or it’s your first car, you may not have the credit you need. A parent with good credit can co-sign the car loan. This will not only decrease your monthly loan payments but also decrease your interest rate. 

3. Put Down as Much Money as You Can Afford

When purchasing a vehicle at a car dealership, most buyers make a 20% down payment. If possible, put down more money. This will take more money off the amount of the loan, decreasing your payments. In some cases, it can also decrease your interest rates, saving you money in the long run. 

4. Keep the Loan Term Short

Once you’re approved for the loan, set up a short loan term. While you’ll pay more month to month, you’ll end up saving money by paying less interest. The longer loans stretch, the more interest you’ll pay, and the more the rates will increase.

Keep a record of your loan schedule to avoid making late payments. While that’s sometimes unavoidable, late payments result in expensive penalties. 

5. Pay Your Fees in Cash

When purchasing a car, you’ll have to pay several fees, including vehicle and purchase documentation and sales tax. You can add these costs into the loan, but it’ll only increase your debt and compound your interest rates. Paying the fees in cash will keep your loan and interest rates lower. 

Whether it’s your first vehicle or you’re in the market for your next one, Express Motors, LLC is here to help. Their large car dealership is restocked every week with pre-owned vehicles. Their selection includes everything from motorcycles and sedans to minivans and commercial cargo vehicles. The rates are affordable, and they offer financing options for those with good and bad credit. If you’re in the Dayton, OH, area, reach out to their knowledgeable staff at (937) 222-7777. To view their impressive inventory or to use their trade-in calculator, visit their website.