When you are considering purchasing a used car, and you intend to purchase the vehicle with a loan, you might wonder where you should get a loan. Some car buyers simply head to the dealership and rely on the dealer to help get them approved for a loan while other borrowers attempt to become pre-approved for a loan. There are upsides and downsides to each approach.
Banks, credit unions, and other financial institutions will provide car loans and you will be able to then purchase a used car with this loan. You do not have to use the full loan amount that you have been pre-approved for. When you know that you will have a loan, you will be able to avoid wasting your time and will be more likely to be able to get a car.
However, in some cases, you might not be able to secure financing. You might not have a long-standing relationship with a bank and you may be concerned about your ability to secure a loan with your current credit score.
Loans from a Car Dealership
Fortunately, some used car dealers work with third-party lenders that are willing to work with those who do not have a solid credit score. The car dealer often receives a bonus if they are able to successfully secure a loan and will have more of an incentive to help you.
How to Prepare for Your Visit
If your plan is to simply head to the used car dealership and for them to secure a loan for you, it's important to know your credit score ahead of time so you can know your odds of being approved for a loan. You may need to prove that you have an income by providing paycheck stubs and references.
The Advantages of a Used Car Dealership
In addition to the possibility of receiving a loan from a used car dealer, there are several other advantages of choosing a used car dealer over purchasing a used car from a private seller. You will be able to benefit from an extended warranty that is provided by a used car dealership.
You will also be able to take advantage of a much larger inventory than if you were to purchase the car from a private seller. Therefore, regardless of where you secure your loan, buying a car from a used car dealer is a good option.
Contact a used car dealer for more information.