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Getting A Good Deal On A Used Car Loan

September 27, 2011

It's no secret that there are deals to be had in buying a used car. For many, buying a used car is a much better option than buying a new car. There is less likelihood that you'll find yourself underwater on the loan, owing more than the value of the car itself. However, there are many ways that you can make sure that you are not only getting a good deal, but a great deal on your next car. Here are some suggestions to help you get the best deal possible on a used car loan.

You won't know unless you ask...
Sometimes, getting a better deal is as simple as asking, but its a matter of knowing which questions to ask. If the dealer does not offer the Carfax report, ask them to run it for you. Make sure that the VIN matches the one of the car you are considering; some unscrupulous dealers have been known to alter the Carfax report by entering a different VIN. You should also ask to have a longer test drive period, enough to permit you time to take the car to a third party mechanic for a once-over. Some dealers may permit you to test drive the car for as long as 24 hours, but they likely won't volunteer this information unless you ask. If they say the car is pre-certified, ask to see a copy of the certification process that the car is put through. Having this document could protect you down the road if certain problems arise.

Finance Outside.
Although nearly all dealers have an in-house financing department, it's often true that you can find a better deal by going outside of the dealer lot. Banks and credit unions often offer highly competitive rates for used car loans. By using a financial institution for your car loan, you'll be able to approach the dealer as a cash buyer, and get a lower price.

Think twice about that extended warranty.
The dealer will be able to offer very convincing arguments as to why you should purchase an extended warranty. However, extended warranties aren't for everyone. In some cases, you may find that the warranty doesn't cover everything, and you might be better off saving for upcoming maintenance. If you have a friend who is a mechanic and is willing to do the repairs at a reduced rate, you might find that this too is better option than the extended warranty.

Used cars can be something of a mixed bag, so make sure you read many reviews to find out which one will be right for you.

Author: CarLoans.com Staff


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