What are the steps to get a used car loan?

I want to get a used car loan to buy a vehicle from the dealer. What are the necessary steps to do so?

Answer
Since you’re buying a car from a dealership, the process is going to be a bit easier than it would be from a private party. To buy a used car with a car loan, follow these steps:
  • Check your credit report to find out what your score is and if you need to pay off any delinquent loans
  • Apply for preapproval with several lenders after you shop around for rates
  • Use the best preapproval rate or offer to get your budget for the vehicle
  • Start shopping around with dealers to get your car
  • Pick the car you want
  • Finalize the loan with your lender
  • Close on the loan
Depending on your income and credit score, the average used car loan rate ranges between 4.08% and 20.67%, so make sure to shop around with due diligence to get the best car loan possible.
Since you’re getting a car loan, keep in mind that most lenders will require full coverage car insurance. Try using the number-one-rated car insurance app, Jerry, to find the lowest rates. Jerry compares personalized rates from more than 50 top providers and delivers the best deals to your phone in minutes for free. The average Jerry driver saves $879 a year on car insurance!
Eric Schad
Answered on Nov 24, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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