So, you’ve found the perfect used car with everything you need. You may think that your work is done, but you still have to negotiate your used-car financing option. There’s a lot to consider with your auto loan, so it’s important to come prepared and with the appropriate knowledge! Luckily, we here at Ron Hibbard Toyota are here to help drivers from Nashville, Gallatin, Madison, and beyond.
If you’re considering a used car, read these 3 important questions to ask before agreeing to used-car financing.
What Is My Interest Rate?
Your interest rate can vary according to your credit, but it’s still important to try to get the lowest rate on your auto loan. Use online credit tools to get an idea of your creditworthiness, shop around for different pre-approval rates, and learn more about what kind of used-car financing options exist for you.
Buying your favorite car is exciting, but don’t be too quick to jump on a deal that doesn’t serve your best interests. Go in prepared, so you can easily discuss your finance options with the dealership’s financial experts and secure a payment plan you’re confident in.
What Is the Term Length?
Make sure to focus more on the total cost of the vehicle than the monthly payment when you’re reviewing your payment options. While it may be appealing to get a more expensive car with the same monthly payment as a cheaper one, you’ll end up paying far more than the car is worth by the end of your auto loan. So, pay attention to your term length to ensure you get a payment plan that won’t stretch over more years than you may want.
What Is the Kelley Blue Book® Value of the Car?
This may seem like it has more to do with the cost of the car, but it impacts your financing as well. You want to make sure you understand how much the car costs that you’re investing in, so you and your financial specialist can craft a fair payment plan for it. Then, once you’re done with your car and it comes time to sell it or trade it in, you can be certain of its cost and get a fair price for it.
In addition to these questions, you should examine your credit score and current financial situation and decide if buying a used car is the best decision for you at the moment. You should always know the interest rate, term length, and value of your prospective vehicle, but if you have less-than-perfect credit, it’ll be much easier for someone to take advantage of your situation with an unfavorable loan.
Finance Your Used Car at Ron Hibbard Toyota
Now that you know the three important questions to ask before agreeing to used-car financing, you’re ready to explore your options. At Ron Hibbard Toyota, we have an expert team of financial specialists to help you secure a great auto loan for your used car, regardless of your credit situation. Our finance team is dedicated to assisting our customers from Nashville, Gallatin, Madison, and nearby communities during their search for their next car.