How to Determine a Used Car Loan Value
With the price of cars and gasoline going up all the time, many people decide to save some money by buying a used car. You'll find some good deals, both on car lots and privately. Find out all that you can about a car you're interested in so that you can get a better used car loan value.
- Difficulty:
- Moderately Challenging
Instructions
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1
Do your homework and check consumer reporting magazines and websites for good used cars. Some resources will offer a recommended range of pricing (see Resources below).
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2
Check the "blue book" price of a used car. The Kelley Blue Book is the bible of car pricing, and will tell you a reasonable price range for a used car (see Resources below).
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3
Evaluate a car's condition. In addition to the blue book price, you need to check for flaws. While a lovingly cared for car with improvements may be worth more than the blue book price, you're more likely to encounter a car with flaws. If you can live with the flaws, make sure the seller adjusts the used car price for flaws.
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4
Get a used car checked out by someone whose opinion you trust, whether it's your dad, neighbor or a favorite mechanic. Get a vehicle history report through the car's VIN number.
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5
Negotiate a price with the seller. One of the benefits to buying a used car is more room for negotiation.
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Take the data you've collected from the Kelley Blue Book with you when you apply for a used car loan. However, keep in mind that some lenders offer used car loans at a higher interest rate than new car loans.
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Use a car loan formula to figure out your monthly loan payments. Don't be afraid to shop around for the best used car loan. Negotiate with lenders for a better interest rate based on your credit history (see Resources below).
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