How to Get Used Car Loans

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By John Smith
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Used car loans help you drive away in a used car.

Used car loans are great because they allow you to buy a used car with little or no money down, and with a used car, you usually get much more car for the money. You can get used car loans in several ways

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Used car make and model
Computer
Time
Used car loan company

Step 1

Contact your personal bank and inquire about their used car loans, rates and terms. The bank you have a checking account with is a good place to start.
Step 2

Try a local credit union to compare rates on their used car loans. Each credit union, bank and car financing company will have different criteria for used car loans than they do for new car loans, so contact a few.
Step 3

Log on to any used car website and fill out a quick, simple online form to get a rate on a used car loan. Write down the rate and terms of the used car loan and compare it to other used car loans you have found.
Step 4

Get a copy of your credit report (buy a copy of all three credit scores) so you can see what your credit score is. Then correct any errors and reapply for those used car loans a month later.

Tips & Warnings

Banks and credit unions all have a low score that they will extend credit to for used car loans. If yours is too low, you have to fix your credit report first before you get a used car loan.
The make and model of used car will affect the rates and terms of used car loans, because banks consider the resale value of the cars they are financing when they finalize credit. This is because they have to consider what they can get for the car at an auction if you default on your used car loan. Try a different make and model if you can't find any used car loans on the car you want to buy.
Never assume a used car loan is easier to get than a new car loan. Car financing companies are more cautious when giving out used car loans, because used cars are riskier.
If your used car is overpriced, you will have a hard time getting any used car loans, because the bank considers them too risky. Used car loans on high mileage used cars are more difficult to get, so try another car if you can't finance a used car with high mileage.

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