Financing A Used Car
TIPS FOR FINANCING A USED CAR
Have you been thinking about purchasing a pre-owned vehicle? If so, you may want to do some research before starting this exciting process! At Toyota of Gallatin, we strive to make the car-buying journey as easy as possible, which is why we’ve put together these tips for financing a used car.
If you have any questions or want to speak to a member of our team about purchasing a pre-owned vehicle, don’t hesitate to give us a call or stop by our dealership. We love helping drivers around Gallatin, Nashville, and Madison, Tennessee, learn more about our inventory.
1. Create a Budget
Before you begin searching for your next vehicle, you’ll want to think about the type of vehicle you’d like to purchase. Write a list of the features and specs you’d like your future car to include. Then, do some research to see what type of models meet your requirements.
As you look at used cars for sale online, you can get an idea of how much your dream car will cost. With this in mind, determine your budget so that you can start your search for your next pre-owned vehicle with confidence.
2. Learn Your Credit Score
Once you’ve created a budget you feel good about, you’ll want to request a copy of your credit score. You can do this via Equifax, Experian, TransUnion, or another online institution. With this information, you can feel well-prepared to start the financing process.
If you have any questions about your credit score and how it will impact your loan, feel free to contact our team.
3. Consider Your Financing Options
If you want to purchase a used car, you may need a loan. There are a few options you can consider when choosing a lender, and we’re happy to walk you through your options so that you can learn more.
For example, at our dealership we have an on-site finance center and a team of finance professionals who are ready to assist you. We work with a variety of lenders and can help you secure a loan you feel confident about.
If you’d like to finance your pre-owned vehicle with us, simply complete our online finance application. This way, you could be pre-approved for a loan before you visit our showroom!
4. Make Your Loan as Short as Possible
To help reduce your overall costs during the car-buying process, you’ll want to have a loan that you feel confident about. While a long-term loan may seem more beneficial, a short-term loan is actually better, as it will save you money in the long run.
With a short-term loan, your monthly payments will be higher; however, you’ll pay the loan off quicker and, therefore, pay less interest over time.
5. Time Your Loan
When securing your loan, consider the timing. Interest rates can change throughout the year, depending on economic conditions and other factors. For example, if there’s a decrease in car sales, you may be able to secure a better loan.
So, it’s a good idea to check when interest rates are at their lowest. To do this, simply ask for quotes from lenders at different times in the year.
6. Consider a Co-Signer
Young buyers or those who don’t have a credit history yet may want to consider getting a co-signer when financing a used car. While you’ll be able to get a loan without one, your interest rates may be high.
Having a co-signer with good credit will help keep your interest rates low and, therefore, make your monthly payments less.
7. Choose Your Vehicle After Securing a Loan
Once you’ve been pre-approved for financing, you’ll want to pick out your vehicle. This way, you know the terms of your loan and can limit your search to used cars that fall within your budget.
An easy way to stay focused throughout your search is to browse our online inventory before visiting our showroom in person. This way, you can filter your search results by make, model, year, and price, allowing you to easily find vehicles that meet your specific needs.
8. Make a Large Down Payment
Generally, it’s recommended that you put down about 20% of the car’s value as a down payment. However, this figure varies for each individual. The most important thing is to ensure you feel comfortable with the down payment you choose.
The more money you put down upfront, the lower your monthly payments will be. This means you can save money in the long run, as you’ll have less interest to pay.
9. Avoid Late Payments
After creating your finance plan and securing a loan, you’ll want to make sure you stay on top of your monthly payments. If you make a late payment, you may have to pay additional fees, which can add to the overall cost of your used car.
Making your monthly payments on time will limit your expenses and improve your credit score in the long run.
10. Stop By Your Local Dealership
When you’re ready to start financing a pre-owned vehicle, stop by our dealership to speak with a member of our finance team. As previously mentioned, we have an on-site finance center where you can speak to an expert who will walk you through the entire process.
We also provide a variety of online tools that can help you. For example, our online trade-in tool can determine your current car’s value. This figure can then be put towards the down payment of your next vehicle.
Plus, our payment calculator can help you estimate your monthly payments and calculate your buying power.
Visit Our Dealership to Purchase a Used Car Today!
After reading these tips for financing a used car, you should feel confident about purchasing your next pre-owned vehicle. If you have any additional questions, however, don’t hesitate to contact us!
When you stop by Toyota of Gallatin, a member of our team will help you find a used car you love and will then walk you through the car-buying process. Stop by today to schedule a test drive of your favorite vehicle to see if it’s right for your drives around Gallatin, Nashville, and Madison, TN.
