How can I get a used car loan?
I’ve read all about how much new cars depreciate, so I’m fairly certain a used car is ideal for me. In the past, I’ve only had car loans for new cars. How do I get a car loan for a used car if I’m buying from a dealer?
New cars can depreciate 11% when you drive them off the lot and up to 20% in the first year, so getting a used car is a smart plan. The good news is that getting a used car loan from a dealership is essentially identical to getting a new car loan.
To get a used car loan, follow these steps:
- Shop around with lenders to get the best rate. You may want to get preapproval, which gives you an estimated approval amount and interest rate.
- Check valuations to make sure your car price is at or below market value. Negotiate the price further using your preapproval amount.
- Select the car you want.
- Go to your preferred lender and give them the car’s information.
- Finalize the loan.
And that’s all there is to it! The only thing you should double-check is your car insurance. Because your lender will undoubtedly require full coverage car insurance, save the most money by searching car insurance policies with the Jerry app.
As a licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!
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