How to Get a Low Interest Used Car Loan

Buying a used car may be a good way to save a lot of money and of course you’ll probably need to get a used car loan in order to do so. Getting a used car loan is like getting any other type of loan. The lender will check your credit and use that to determine whether or not you will get a used car loan. If you do receive a used car loan, the lender will also use your credit to determine what your interest rate will be.

Difficulty: Easy

Instructions

1. Go to a credit union to get a used car loan. A credit union can usually offer lower interest rates than a bank. Otherwise you can still go to a bank to get a used car loan. Try getting the used car loan through a bank or credit union that you’ve been a member of for awhile. Since you’ve been a longtime customer, they will be more likely to give you that used car loan with a good interest rate.

2. Get a used car loan by using the balance transfer option on your credit cards. In some cases, you can use a balance transfer on your credit card to purchase a car. If you are doing this option make sure the credit card APR is something you can handle. Some credit cards offer low to zero APR the first 12 months, so you can take advantage of that.

3. Get a used car loan by borrowing from your family members. If your family members trust you enough to lend you money, you may be able to get a used car loan with a good interest rate from them. Just be sure that you default on this used car loan otherwise you’ll not only get into legal problems but you’ll be damaging your relationship.

Tips & Warnings

• Make sure you understand the fees associated with getting a used car loan otherwise you could be spending a lot more than you bargained for.