Exploring 3 Options For Buying A Used Car

29 July 2021
 Categories: , Blog


Cost is often the number one concern for many people when purchasing any vehicle, new or used. If you're in the market for a used car, then you're probably already exploring ways to cover the price. Although you might think your options are more limited if you aren't buying new, there are plenty of ways to handle the purchase price of a used car.

Although there's no one-size-fits-all solution and the best approach will vary depending on your unique circumstances, you shouldn't let financing put you off from getting a good bargain on a used vehicle. Instead, consider these three options to make your used car purchase as affordable as possible.

1. Work With a Dedicated Auto Loan Company

Many lenders focus solely on providing loans for car purchases. These companies can often offer competitive financing, and options exist for a wide range of credit scores. Many will also allow you to pre-qualify using only a "soft" credit pull, which means you can get a rough idea of your spending limit and rates without impacting your credit score.

If you're applying with a company that will perform a hard credit pull, make sure that you're ready to buy. Multiple hard credit inquiries for a similar purpose (for example, purchasing a car) will have only a minimal impact on your credit score if they occur over a short period. Note that some lenders may only work with a limited dealership network for used car purchases.

2. Use Your Existing Bank, Credit Union, or Credit Card

Many financial institutions offer auto loans for used cars, so it's likely you already work with at least one that can help you. You may obtain better rates or other terms if you already have an existing account with your lender. As with dedicated auto loan lenders, you should ask if you can pre-qualify with a soft credit check to minimize the impact on your credit score.

Another advantage to pre-qualifying with one of your existing financial institutions is that they can provide a fallback. If you can't get good enough terms from another source, you know that you'll have at least one financing option available to complete your purchase.

3. Finance With the Dealership

Finally, most dealerships provide financing for used vehicles, and they may be able to offer you terms as good as or better than other lenders. Some dealerships may also have discounts or other incentives available if you obtain your loan through their financing department. Even if you have other options available, it's always worthwhile to discuss financing with your dealership.

Remember that you don't necessarily have to select only one option. You can pre-qualify with multiple lenders to choose the best rate, ensuring that financing won't be an obstacle to finding the perfect new (to you) car.

For more information about used vehicles for sale, contact a used car dealership near you.