Buying a used vehicle can be a great way of getting the car you need at a fraction of the cost. It’s no secret that cars depreciate in value, and more people are opting for used vehicle financing instead of getting a new car.
While used vehicles typically come with pros and cons, there are some used vehicle financing tips to keep in mind when you are looking for a financial solution to get the wheels you want.
Here’s what you need to keep in mind when looking for used vehicle financing:
Do your research.
You need to compare as many lenders as possible and make sure that they are registered credit providers. The lender of your choice should be registered with the National Credit Regulator. Shop around for the best rate.
Before applying for used vehicle financing, you should know how much you can afford.
Have a clear idea of the type of vehicle you want and what you can afford to buy. Previously owned vehicles are cheaper because they have already depreciated in value. Keep in mind that you may need extra cash should interest rates increase.
When you get used vehicle financing, you should take other costs into consideration.
When calculating car payments, take into account fuel costs, maintenance and security. You also need to be able to afford to pay for insurance.
A good credit record can help
Keeping a clean credit record can help you in terms of minimising your repayments and saving you money. Before applying, make sure that you check your credit reports. The interest rate that you will be charged will be based on your credit score.
Pay a bigger deposit
A general rule of thumb is that the older the vehicle, the bigger the deposit and the shorter the repayment term.
