Yes. If you have a local dealership that offers certified pre-owned vehicles, these types of used vehicles are often available for lease with different financing options. Unlike traditional used vehicles, certified pre-owned vehicles undergo a rigorous inspection and are only available at franchise dealerships. Shopping certified pre-owned vehicles allow you to shop with peace of mind. For this reason, these types of vehicles are often offered with financing or lease options.
Direct Lending vs. Dealership Financing
Whether you’re shopping for a used car from a franchise dealership or a used car dealership, many dealerships offer their own in-house financing options. These in-house financing dealerships act as creditors that service out your loan for your used vehicle. For drivers who have bad or poor credit, in-house financing options can be incredibly flexible, working well with your situation.
Another option consumers can resort to is direct lending. Through direct lending, you are borrowing money from a bank as opposed to a car dealership. These bank loans are often classified as personal loans, and an interest rate is negotiated based on the term and amount of the loan. As with any loan, the better your credit score, the better a loan you can secure. Direct lending is typically a better option for individuals who have good credit, and want to secure the lowest rate possible.
If you’re shopping for a used vehicle, be sure to compare different lending options, available rates, and use your different quotes as leverage in securing a loan that works best for your situation.
Negotiate with Your Dealership
As with any traditional auto loan, you can always negotiate the terms of your loan and rate. If you’re purchasing a used vehicle, this is no different. When financing a used vehicle, or entering into a lease agreement, do your due diligence in knowing how much you should pay.
You should know your credit score, have documentation of your credit history and trustworthiness, and use this information to leverage a better deal than the one the dealership offers you. Similarly to financing a new vehicle, you can always shop around in order to secure the best auto loan possible.
Save Up a Sizable Down Payment
No matter your credit history, or the financing route you go, saving up a sizable down payment is one of the best ways to prepare for financing a used vehicle. A sizable down payment can be made towards your loan and lower your overall interest rate. Taking the time to save up a sizable down payment can save you hundreds of dollars in the long run as your monthly payments will generally be lower. When working with dealer financing options, having a hefty down payment can be especially helpful for negotiating a good rate.
Shop Around
No matter your credit history, you should always shop around in order to secure the best rate and loan agreement possible. Many dealerships will honor quoted rates from other dealers and even direct lenders. If there’s a specific vehicle you’re eyeing from a specific dealership, being able to bring competitor quotes with you can be one of the best ways to get a dealership to work with you on your terms.
Work with Reputable Dealers
Finally, no matter the financing or lease options you seek out, it’s always important to work with a reputable used car dealership that you can count on. Reputable dealerships will help you navigate through the financing process. Additionally, they will have great customer service so that you always feel confident in your loan agreement and vehicle purchase.
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