4 Cheap Car Finance Deals for Used Cars: The Best Terms and Rates
Cheap car finance deals for used cars can be taken advantage of by the average car buyer. The market is flooded with opportunities to acquire a competent car at low prices, and the car shopper is presented with a bewildering array of options to make financing easy and hassle free.
The cheapest car finance terms will depend on the type of used car you decide to buy. Rest assured that there is a financing option available for every type of car you desire, whether an efficient compact, large SUV or agile sports car. Remember to choose the car that is right for you. People often make the mistake of buying more than they could afford and suffer monetary consequences in the middle of the loan term.
Cheap Car Finance Deals
A used car loan entitles you to pay a substantial down payment along with monthly payments over an agreed loan term. Not all loans are the same, and the cheapest finance deals are the result of careful study and vigilance on the part of the consumer.
1. Low Monthly Plans
A low monthly plan is probably the most popular financing option offered by car dealers all over the country. The consumer is given the option to pay low monthly payments over an extended loan term of up to 72 months. The downside to this offer is the higher than usual interest rate. A fixed APR from 6.9% to 7.5% or higher is to be expected.
There are also low monthly plans that require a down payment at the beginning of the loan term, and this offer is usually provided with a low interest rate. If you plan to save a significant amount of money on your used car purchase, then a low monthly plan should be considered at the nearest used car dealer in your area.
2. Zero Interest
A zero interest finance deal is the same with a regular loan, as it entails a down payment and monthly payments as well. There is no interest charged on the monthly payments with this type of financing deal but a higher selling price can be commanded by the dealer under this financing option. It would be best to compare prices at different car lots to get a better understanding of which car gives the best value for money under this financing deal.
3. Low Down Payment
This is the best option for the used car buyer when excess cash is not available, as a $100 to $250 down payment is enough to consummate the deal. Interest rates may vary but the loan term will play a crucial part in determining the interest rate for this kind of loan. Whenever possible, it would be best to choose a loan term not to exceed the estimated useful life of the used car.
4. Extended Loan Terms
The car buyer could also take advantage of a used car loan of up to a 72-month term for cheap monthly payments. The interest rate will be higher in this regard, as interest rates have a habit of adding value when the loan term stretches past 36 months.
It would be best to consult with used car dealers in your area to get a thorough understanding of the kind of used car financing deal right for you. Take advantage of used car dealers on the Internet, as most companies are affiliated with different banks and credit unions that offer affordable financing plans to any used car purchase.