You’re looking for used luxury cars for sale. Smart. You know that’s the sensible way to drive the car of your dreams without crashing your budget. Now, how can you push your vehicle purchasing power even further? With these 5 tips for obtaining a great loan.
Finding Used Luxury Car Loans That Work for You
1. Start at the beginning: check your credit score. Better credit = better interest rates. Before shopping for your vehicle, check your report for errors. Correcting these can make an impact quickly and help you secure a better loan.
2. Save up and put down. Reduce the amount you need to borrow by putting more down initially. You’ll thank yourself each month when the payment is due, and you’ll save money over the life of the loan. You may also receive more advantageous loan terms: with a bigger down payment, the risk to the lender decreases. They may “thank” you with lower interest rates.
3. Look for a short-term loan. If you can, accelerate your financing timeline. You can do this by making a larger down payment and decreasing your principal, as mentioned, as well as by increasing your monthly payment. Most lenders will give you a better interest rate in this case. If it’s a choice between a 72 month loan or a 36, go with 36. Bonus: your car will be 100% yours much sooner.
4. Shop around. You don’t just buy the first car you see on a lot or in a showroom. You research, you browse, you test drive. Do the same with your loan. Use online tools to compare rates and see which lender can offer the best terms.
5. See what your dealer can do for you. When you visit a dealership, make sure you have financing arranged. This puts you in the driver’s seat, and it compels dealers to compete for your loan business. You may find they have special financing deals or will extend better terms if they know they could lose that business to another lender.
When you are searching for used luxury cars for sale, always consider financing first. You’re getting a terrific deal in terms of the vehicle; now let’s make sure your loan is just as great.
