Understanding Used Car Loans
Some people in the market for a used car might prefer to pay for their vehicle with cash to avoid a credit inquiry and long-term, monthly payment. But in the real world, this is becoming less and less common. Buying a used car typically involves applying for a used car loan. While you might not jump at the idea of taking on a new monthly debt, there are ways to keep your used auto loan affordable. Used car loans are a form of borrowing money to purchase a previously used vehicle. Like any loan, used auto loans come with interest rates and monthly payments, so make sure you can afford the payments before you sign.
Taking out an auto loan to purchase a car might be the right decision for you if you need a car soon but don’t have the available funds to pay for it. As with any loan, shop around for different rates and terms from a variety of lenders before choosing a used car loan.