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Speed Up That Purchase: How to Finance a Used Car

You’re probably reading this because you’re planning to buy a used car. If you’ve already picked a used car but the money is not there yet, you can always look for a financing aid. But auto financing can be a bit tricky with all its legalities. If this still confuses you, don’t worry because you’re not alone. In this article, we are going to tackle the ways on how to finance a used car. 

How to Finance a Used Car

What Is Auto Financing?

As mentioned, if you’re still not capable of buying a car right away, then you can ask assistance through auto financing. Be aware that you need to meet specific requirements and qualifications to make you eligible to get one. Once you’re eligible, you’d be able to purchase the used car and pay through monthly installments. These installments are affordable most of the time, so you’d still be able to allocate a budget for your payment efficiently each month. Although getting into an auto financing program would make your purchase more expensive, you’re paying the convenience of having your car right away without shelling out a considerable sum of cash. Here’s how you can get used car financing.

Dealer Financing

You can always ask for help from your local dealer. Most of the time, car dealers have financing offers that they can present to prospective clients throughout the year. The only downside of this is that you might not have many choices when it comes to the make or model of your desired vehicle. Make sure to shop around and ask a good number of dealers and choose the one that has the best offer for you.

Buy Here Pay Here Financing

Another option on how to finance a used car is through the Buy Here Pay Here financing. BHPH is an excellent way to get a used car when you have credit or credit score issues. But keep in mind that this should be your last option because of its high rates. BHPH financing is mostly available in franchise dealerships. When you have a relative who has a good credit score, they can co-sign the loan with you. That way, you’d be able to buy a car at a better interest rate. This financing is also suitable for those who don’t have much credit history yet. make sure you’d be able to pay your dues on time.

How to Finance a Used Car

Getting a Direct Loan

Getting a Direct Loan is the most comfortable auto financing method out there, and it’s also the method with the lightest conditions. To apply for this, you must have a good credit score first. By knowing your credit score, you’d be able to know if you’re qualified for a direct loan or not. It also gives you some pointers on what kinds of rates and offers a dealer can give you. The higher the score, the better the rates. On average, your credit score should not go below the score of 680.

And these are the ways on how to finance a used car. If you’re eyeing to purchase a pre-inspected car, don’t forget to click on the link.

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