How to Get Used Car Loans

If you’re in the market for a used car and you don’t think you can afford it, your first inclination might be to avoid the purchase altogether. But if that’s not an option, there are other ways to trim down your new car budget. Depending on what type of finance or loan you qualify for as well as your credit score and income, there are easy ways to get used car loans.

Shop around

Before you even think about getting a loan, you should research your options and see what rates are currently being offered. Independent used car loan brokers such as Capital One – Capital Auto Finance offer competitive rates that can still save you money over buying from a dealer. In order to find the best deals, it is important to shop around for your loan. Online comparison tools such as Bankrate and LendingTree help give you more information about how to get used car loans.

Get a cosigner

Cosigning is an option for people who don’t have a very good credit score and need someone with good credit to sign on the dotted line. Since the cosigner is legally responsible for your loan, they will work with the lender in order to get you approved. Having a cosigner can help you get your used car loan approved even if your credit history is less than stellar.

Locate local banks

If you can’t find any outside used car loan brokers that are willing to help then try your luck at local banks instead. Finding a local bank that offers low interest used car loans can be easier than finding a company online, but it does involve some legwork on your part. You might want to call the lender or bank to see if they have any used car loans available in your area. If you can’t secure a lower rate, you can always look online for other options.

Check with your credit union

A credit union is a type of financial organization that is owned and run by its members instead of a large financial institution such as a bank or investment firm. Usually, you’ll have to be employed by the credit union itself in order to qualify for some of their low interest used car loans, but there are options available for everyone. In addition to offering low interest rates on  used cars in noblesville, credit unions also offer loan discounts and other services like check cashing and prepaid debit cards.