Are you planning to buy a used car in the near future? Are you wondering how you will pay for it? If you don’t plan on paying cash for your vehicle, you will need to find a way to finance it. There are several choices when it comes to financing a car, including using a buy here pay here near me situation or getting a loan from your bank or credit union.
Here is more information on how to get financing for a used car.
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First, Check Your Credit
Before you start exploring options for financing your car, you should check your credit score. Many institutions will not lend money for a used car purchase unless you have a credit score of at least 675. You may still be able to get financing if your score is lower, but it may come with additional fees or a higher APR.
If your credit score is low, you may want to wait to explore loan options until you can improve it. Some simple ways to boost your score are to pay off debt, make sure you pay bills on time, and make sure you have available credit on at least one of your credit cards.
Decide Where You Want to Get Financing
Do you have a good relationship with your bank or credit union and want to keep all your loans and other finances together in one place? If so, you may want to start by asking your current bank or credit union about an auto loan.
However, some prefer the simplicity of getting a loan from the same place where they buy their vehicle. When you choose a buy here pay here near me dealership, you can take care of everything—buying the vehicle and paying for it—at one time. This eliminates further work on your part and ensures you get the vehicle you need quickly.
What You Need to Qualify for a Vehicle Loan
In some buy here pay here near me situations, you will be able to fill out an application online. If you’d prefer to apply in person, you should make sure to bring your proof of income, a valid ID such as a driver’s license, financial references, and a down payment. Your down payment should be the largest you can comfortably afford to increase your chances of being approved for the loan. You may also want to bring bank statements, check stubs, or proof of additional income to increase your approval chances even further.
Choosing a Buy Here Pay Here Near Me
Decided you want to get financing from the same place you buy your used vehicle? It’s important to choose a dealership with a good reputation—especially if you will be borrowing money from them. Ask around to see if anyone in your circle has used a buy here pay here type of dealership and what their experience was. You can also look up reviews online to see what past and current customers say about dealerships in town and ask to speak to the financing manager when you visit the dealership.