Saturday, July 2 , 2022

How To Find The Best Car Loan

How To Find The Best Car Loan

If you have your eye on a used classic car or late-model vehicle, don’t miss your opportunity! Here’s how to get the best car loan for a used car. 

Buying a Used Car? Here’s How to Find the Best Car Loans

An insider’s guide to car finance for second-hand vehicles

The used car market is full of hidden gems, from classic cars to affordable late-model vehicles.

Buying a used car can be a great way to save money on a vehicle with low kilometers or find your dream project car.

Of course, buying second-hand comes with a few risks.

That’s why finding the best car loan is such an important consideration when buying a used car.

With the proper preparation and research, you can confidently buy a used car knowing that you’re saving money for repairs, modifications and road trips.

Thankfully, finding the right financing is easier than scouring the second-hand car market for a diamond in the rough.

Here are our practical tips to help you get a better deal on a used car.

  • Do your research

Used cars rarely come with a warranty.

While that might scare some people away, it shouldn’t be a problem if you know what you’re buying.

As you narrow your car search, look through online forums, consult car fanatics and chat with your mechanic mate.

You’re looking for:

  • Common mechanical problems
  • Age-related service requirements
  • Rare or expensive parts
  • Mechanics’ familiarity and confidence with the car
  • Recalls or recurring issues

Factor any possible repairs into your car finance calculations. 

You can use a car loan calculator to see if the total cost (i.e. the list price plus mechanic fees) is still within your budget.

  • Check the vehicle

Now that you’ve found a used car within your budget, consider whether a pre-purchase inspection is necessary.

Vehicle inspections cost from $100 to $400 (as a general guide), depending on the car’s age and condition.

It’s not an insignificant amount of money.

However, if you’re taking out a car loan, you want to avoid any unexpected costs that could jeopardize your ability to repay the money.

So a pre-purchase inspection is a relatively small price to pay for peace of mind and confidence in your car purchase.

  • Read the fine print on your car loan

So you’ve found your second-hand car, researched affordable car financing, and conducted a pre-purchase inspection.

What next?

Before signing on the dotted line, make sure the terms and conditions of your financing suit your lifestyle.

For example:

  • Can you pay out the loan early without penalties?
  • Is your lender reliable?
  • Do you need more time to accumulate a better credit rating?
  • What are the penalties for missing a payment?

If a car loan seems too good to be true, it likely is.

The best car loans are simple, straightforward, and free from sudden interest rate spikes or hidden catches.

  • Shop around for car finance

Just like finding the best-used car, finding the best car loan requires research and patience.

You don’t want to rush into a lemon of a loan.

However, unlike vehicles, you can often test-drive car finance options online in minutes.

The best car loan providers like WA’s Yes Loans offer fast online pre-approval with no commitments, so you can shop around for a loan that suits your lifestyle.

Consult at least three loan providers, and remember to read the fine print carefully. 

Get a better deal on car finance

With patience and a level head, you can easily find a car loan geared to your lifestyle.

So while you’re shopping for your dream used car, keep your budget and future costs in mind.

Car finance options abound – but you’ll know the best car loan when you see it.

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