Tips For Used Car Financing

Purchasing a vehicle, be it new or used, is at best a stressful process that involves agonizing over which car to get, and which car best fits your lifestyle and budget. For most people, the purchase of a vehicle involves a loan, and securing a loan means understanding the finance process before you bind yourself to a year's long commitment. With that, here are a few steps to know before you commit to securing a loan for your used car.

1. Know your credit score before you apply
2. Research lenders
3. Compare different used car financing offers

Understanding The Financing Process

The first step before you venture into the world of lenders is to know your financial score. Your credit score originates from three major credit reporting bureaus: Experian, Equifax, and TransUnion. Your credit score is going to fall within a range of 300 to 850. Borrowers with a low credit score will have a hard time securing a loan with favorable interest rates, while those at the higher end will get better offers.

Your credit score is determined by how many accounts that you have open, your credit limits, how many times you have applied for credit, and your history of making payments on time.

Once you have your credit score, you can begin to research lenders. You can find lenders at large national banks, credit unions, community banks, and finance companies. When you do go and secure an auto loan, be aware that though lower monthly payments are nice, the length of time it takes to completely pay off your vehicle will drastically increase, which allows for more interest to build.

Finance Your Vehicle at Gateway Nissan

Our finance staff are on hand to assist you every step of the way. We help prepare a financing plan that works within your budget. You can even get the process started before stepping foot in our dealership. All you have to do is apply for financing online with our safe and secure form.