Here are the answers to some of the most commonly asked questions about used car loans.
You can apply for used car loans by clicking "apply now" on our site and filling out our short, free application. The application is secure and will only take you a few minutes. After filling out the application, you will be provided with quotes on used car loans from several lenders.
Our application is completely free. You can access several quotes from various lenders free of charge by filling out our short application.
Used cars cost, on average, over 50% less than new cars. Used cars also do not have the steep depreciation curve that new cars do. However, new car loans usually have slightly lower rates than used car loans. Furthermore, new car loans can usually be financed over a longer term than used car loans can. To decide if a new or used car is best for you, compare how much you save on the price of the car by buying used to how much you would save on financing by buying new.
Experts recommend making about 20% of the car's price in a down payment. Making a considerable down payment can lower your monthly payments, reduce the total cost of interest, and protect you from owing more on the car than it's worth. Most lenders don't require such considerable down payments on used car loans, but it will save you money to make a larger down payment up-front.
You have two options when buying a used car: a dealership and a private party. Dealerships tend to be more expensive than private parties, but you will likely get a warranty and even a certification on the car that a private party can't offer. On the other hand, you will probably save a lot of money by going through a private party, but there is also a large potential for deception in these transactions.
Find out what to ask potential lenders of used car loans on our Five Things to Ask Your Lender page.
