Getting a used car loan can be a confusing affair. It's completely natural for first-time auto loan applicants to face n number of questions before and during the application process. You may be one of them too. To make the process easier, we have put together a list of questions and their answers for you. Here it goes:
How Do I Apply For A Used Car Loan?
You can either visit a credit union or go online to apply for an auto loan. Online mode proves more convenient as you can save time, compare different schemes and get approval from lenders.
What Are The Key Elements I Should Look At?
The calculation of auto loans considers many variables. You should look at the value of the car, tenure of the loan, interest rate, down payment, credit score and the cost-benefit analysis of used vs. new cars.
What Does A Used Car Loan Require?
Applying for a used car loan requires you to provide your personal information, verifying your income, and checking your credit score. The lender might also want to know about your previous car ownership history and the car you intend to purchase now.
How Much Down Payment Should I Pay?
A larger down payment means you pay less on a monthly basis because the amount you borrow comes down. You should ideally pay 20 percent as a down payment on the car.
What Is The Interest Rate?
The interest rate of an auto loan is called APR (annual percentage rate), which is the yearly interest you pay on the auto loan. Some lenders have a fixed rate of interest, meaning the amount of interest remains fixed through the loan’s tenure.
When Can I Choose The Car?
You can choose the car after you get approval from your lender. After approval, your rate of interest is locked in for thirty-calendar days from the date of applying. This gives you a fair idea of how much you can afford.
Where Do I Get The Best Scheme?
You should look around the market. You should check our advertisements and compare different offers. Doing so will help you get the best deal.