Applying Used Car Loans – Car loans provides the financing you need to purchase your dream car.
Used Car Loans
They can also be used for buying a second-hand car with flexible payment options and affordable interest rates.
Used Car Loan Applications
The interest rates of used car loans differ among various lenders and usually range between 5%-17% APR due to your credit score.
Your loan terms are based on finance charge, loan duration, the amount of monthly payment and generally you need to repay the loan from 24 to 72 months. The applying used car loans amount plus the interest plus additional fees make your monthly payment. Your pre-owned car loan rate will be based on your credit score, loan term, location and car value.
You also need to pledge the possession of your car to the lender until you complete your repayments. Lastly, most lenders provide loans for used cars up to 6 model years old so you need to choose the car you want to buy accordingly.
Applying Used Car Loans | Pre-qualification
You may apply online or visiting the nearest branch. Applying used car loans require you to provide necessary documents to the lender to get pre-qualified. After checking these documents, your lender will decide the best used car loan rate for you.
Personal requirements and necessary documents for used car loan:
- Proof of income (pay stubs)
- Proof of assets (banks statements and financial account statements)
- Employment verification
- Driver’s license
- Social Security number or individual taxpayer identification number
- Being 18 years old or older
- Year, make and model of auto
- Estimated value
Interest Rates for Used Car Loans
There are various factors that affect how much interest you will be charged. If you prefer getting a shorter term loan, you will be charged a lower interest rate but you have to be prepared to face higher monthly payments.
On the other hand, longer term applying used car loans come up with lower monthly payments but higher APR leads you to pay more over the life of the loan. The lenders assess the risk by checking your credit score before deciding your interest rate. Used cars loans usually have higher interest rates than new car loans. You may lower your interest rate by making a down payment.