How Can I Finance a Used Car?

Asian Couple signing sales contract for car at dealership

Buying a used car for your daily Maple Grove area drive is a great idea. Not only can you save yourself thousands compared to buying a new car, but you can also get more car for the money while you’re at it. But do you know how to finance your used car? We do. Read on to learn about the three most common ways to get financed, so you can take home the car you need, and skip the hassle.

Get Bank Pre-Approval

Banks and credit unions around Minnetonka often allow shoppers to secure financing based on their credit, the cost of the vehicle, and other criteria. Typically, you’ll need to schedule an appointment to speak to a loan officer to discuss your needs and provide proof of income before they will consider loaning you the cash you need. If you have excellent credit, this is a good way to secure the funds you need to purchase your vehicle. If your credit is less than perfect, however, you may need to consider a subprime lender, such as a “Buy Here Pay Here” financing.

Buy Here, Pay Here Financing

For car shoppers with poor credit, “Buy Here, Pay Here, is an option available from some dealerships and select cash advance branches in the Brooklyn Park area. While these loans can secure the money you need, they tend to require a higher down payment, have very high interest rates, and can require you to establish automatic payments to ensure you aren’t late with your remittance. If you ever do find yourself short, fees can be very high, and repossession can occur without much warning.

Dealer Financing

Another option and one growing in popularity is dealer financing. Dealer financing offers the best of both worlds, allowing shoppers to pre-approved for a set purchase amount prior to choosing their vehicle. The benefit of this, of course, is that you can make use of online tools that allow you to:

With these tools, you can adjust the down payment amount, term, and purchase price of your used car or truck until you find a payment that suits your budget.

Regardless of the financing method you choose, you will need to provide proof of your identity, residency, and income before approval. To learn more or to schedule a Wayzata area test drive of a new or used vehicle, contact Cornerstone Plymouth near New Hope today.


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