Used
Car Loans
by: Matthew
Bourne Want to buy a used car but
just don't have the funds sat in your bank account?
If so, why not consider taking out one of the
many used car loans available on the loans market.
Used car loans are specifically designed by loans
companies to provide used car buyers with a competitive
finance arrangement through which to purchase
a used car. Flexible loans terms are available
from used car loans companies, as well as low
APR deals suitable for used car purchases. Used
car loans of up to £20,000 can be arranged on
an unsecured basis, with loans companies offering
higher loans amounts if security is supplied.
Advance plan your used car loans
When buying a used car it pays to do some advance
planning and arrange your used car loan ahead
of the search for a used car. There are many loans
companies out there offering loans for used car
purchases, so it makes sense to shop around to
get the best loans deals for buying a used car.
Look for car loans that are flexible to your needs
and offer a low APR, so your monthly used car
repayments on any loans taken out won't be sky-high.
As with all types of loans, you should first
determine how much you can afford to borrow on
loans to buy a used car. Loans calculators are
available on the Internet and can be used to calculate
loan and repayment amounts in accordance with
different APRs. It is important to take into account
other financial commitments too, including other
loans, when calculating the loans amount that
you can comfortably borrow to purchase a used
car.
If you intend to buy your used car from a used
car trader where they offer car loans / finance
for their used cars, then do make sure that the
loans deal you sign up to is better than the loans
deal that the used car trader can offer. The APR
rate is the critical thing here. On car loans
tailored for used car purchases the APR rate -
i.e. the rate of interest you'll pay on top of
the used car purchase price - can be as low as
6%. Finance loans deals through used car traders
may have a higher APR, so pushing the total cost
of buying a used car up to an unacceptable price.
One final thought. When negotiating the price
of a used car with a trader, they may accept your
lower offer providing that you take up one of
their loans to finance the used car purchase.
If this is an option then do check the terms and
conditions of their loans carefully, paying special
attention to the loans APR rate, as the savings
from your negotiation on your used car may not
be as attractive as first imagined when you consider
the final costs attached to their loans! |
