A vehicle is a significant investment, and buying a used car is a great way to maximize your return on investment. If you don’t want to tie a lot of your cash up in your investment, a used car loan may be a good fit for you. Read on to discover everything you need to know about navigating the process of vehicle financing.
Navigating the Process of Getting a Used Car Loan
Create a Monthly Budget
The first step to take in securing a car loan is creating a monthly budget so you can see how much you can comfortably afford to spend each month on transportation. Remember that the cost of car ownership does not end at insurance, registration, and fuel. You’ll need to renew your registration with the California DMV annually, and there should also be room in your budget for routine maintenance and repairs.
Check Your Credit
The second step in securing auto financing is checking your credit reports and credit score. Get free copies of your credit report from Equifax, Experian, and TransUnion. Contact the credit reporting bureaus if there are any mistakes on your credit report to increase your credit score quickly.
Your credit score is vital for securing financing. Also, the higher your credit score is, the lower you can generally expect your interest rate to be. Consider paying off some of your outstanding debt to free up cash in your budget and increase your credit score.
Get Pre-Qualified for a Car Loan
Once you have an idea of what you can afford and what you want, it’s time to see what financing options you may qualify for. You can discover if you pre-qualify for a vehicle loan online by filling out a short form. Then, you’ll be able to see how much you should be able to borrow, what loan terms you qualify for, and what monthly loan payments you can expect.
Visit the Dealership
The final step in financing a used car is visiting the dealership. Test drive a few of your favorite pre-owned vehicles that fit in your budget, and talk to the financing department about a loan. We’ll need to pull a hard credit check, but you’ll be driving off in your pre-owned vehicle shortly after we run your information.
Financing a used car can be accomplished in just a few simple steps. To determine what financing options you qualify for, contact us at Own a Car Fresno in Fresno, CA today.