Can You Finance Used Cars?
When you’re in the market for a car, buying a quality used vehicle can often be the wisest financial choice. At Kerbeck Cadillacs, you’ll find a wide array of used cars to fit any budget or lifestyle. Once you’ve decided what you need, the next big question will be: how to pay for it.
You might be wondering if you can finance a used car? Let’s take a look at this issue and some available options.
Financing Used Cars?
The short answer is “yes,” you’ll be able to finance a used car. The next thing to consider is which option is best for you.
The two main types of financing a used car are direct lending and dealership financing.
Direct Lending
Direct lending means you would borrow the money for your used car from a bank, finance company, or credit union. This is essentially a direct loan, and the buyer would agree to pay it back over a period of time.
There are advantages to direct lending. You can get pre-approved credit terms, as well as lock down the maximum amount you can borrow. You can set the annual percentage rate (APR), along with the length of the loan (in months). These are all useful points when negotiating with the dealer.
If pre-approved, you could negotiate a satisfactory end-price at several different dealerships for the vehicle you’re interested in.
Dealership Financing
With dealership financing, the dealership is the source of the loan. You would enter a contract with the dealership and buy your used truck via a payment plan. This contract generally gets sold to a bank, credit union, or finance company. A third party handles the monthly payments.
You might be able to choose from a good variety of options if you go through the dealership. Be sure ask about special offers and deals. Some can depend on your situation and credit rating, so be thorough in your research. You can also determine the value of a potential trade-in, as well.
We can secure competitive rates from our manufacturer and local banks, help you find extended and comprehensive warranty programs, and much more. Apply for financing at Kerbeck Cadillacs today and find out what we can do for you.
