Print Article for : Financing A Used Car

Your Online Guide » Information on Cars » Used Car

[F223]Financing A Used Car

by Greg Chapman, Gre

If you are in the market for a used car that you plan to finance, you have likely determined a few features you are looking for in your new vehicle. Whether your new used car must have a certain size engine, be produced by a particular manufacturer or have an automatic transmission, you probably have some predetermined preferences in mind. With the excitement surrounding the prospect of cruising down the road in your new vehicle any day, do not neglect to find out some important details about financing through the used car dealer with whom you are doing business. Here we examine some simple questions you should ask a used car dealer up front regarding your loan:

-Will my loan be financed in house, or outsourced to a bank or other financial institution? The answer to this question will tell you whether the used car dealer is truly your lender. Dealers who outsource your loan to another entity are serving as a middle man on your loan, and probably charging you a premium for the service. If your loan is financed by a bank, there will likely be multiple inquiries made on your credit, which will negatively affect your credit score. Asking this simple question will also let you know with whom you will be dealing should any questions arise regarding your loan in the future.

-Do you report loans to a credit bureau monthly? Once you determine that your used car dealer will be handling your loan internally, make sure that your timely payments will be reported to a credit bureau. Financing a car is an excellent opportunity to improve your credit score, but that will only happen if the lender is reporting your loan status to a credit bureau.

-How much will my monthly payments be? Before you sign on the dotted line, make sure that your budget allows for the monthly payment amount associated with your loan. Ensuring that your monthly payment amount falls within your budget will prevent financial problems in the future, and allow you to take advantage of the credit boost associated with making your payments on time each month.

In addition to establishing a financing arrangement that will benefit you in the long term, make sure you are investing your hard earned money in a worthy vehicle by checking its background for past accidents, use as a rental car, flooding and other incidents by obtaining the CARFAX report. Reputable dealers will often take this step for you, providing the CARFAX report on any of their vehicles at no cost to you.

Whenever a person buys or leases a car, he seeks ways to finance this move. Most auto financing involves a car loan, which entails a detailed check on his credit history and a tough interview about car finance. When he undergoes all these to buy a used car, it is only fair that he also performs his own investigations about the car he is going to buy. In fact, he should never consider buying a used car, which history has not been checked. If he does, he may just end up paying for a piece of junk.

A used car must be checked for its title, registration, odometer, and the problems that it had weathered before it reached your eyes. A “title check” will determine if the car is salvaged, flooded or rebuilt. For example, many cars were destroyed during the 9 -11 World Trade tragedy. Many cars, too, were damaged during the hurricanes and floods. These cars were salvaged by enterprising people. The cars will be rebuilt and sold again at car auctions. A title check will also discover if the used car has lemon history.

A “registration check” will determine if the used car has been used as a fleet car, or as a taxi, or even as a police car. If the used car has been utilized in any of these, then it is safe to say that within a given period of time, this particular used car has covered more miles than the average privately used car. A registration check will also reveal if the used car was ever rented or leased.

The car's odometer is an instrument used to measure the distance traveled by a vehicle. An “odometer check” will show if the odometer has been broken or fraud. It will also show if it has been rolled back or rolled over. If the odometer has been tampered, this does not bode well for the next owner of the used car. The car may be older than what the dealer is telling you. Or it may have mileage problems.

A “problem check” will determine if the used car has sustained fire damage or an explosion. It will also show if it has been involved in a major accident. The fire or accident may have inflicted a still undetected damage on the used car. It is also quite creepy to use a car that has cradled dead bodies before. A problem check will reveal if the car has been stolen. A car that has been stolen may no longer have all its original parts.

A used car may give you more problems than you can manage. But not all used cars are damaged, leased or stolen. This is why there are still many people who take out car loans to buy a used car. To be safe, the potential buyer must order a vehicle history report.

Article Source : Pg. 7

About Author

Both Greg Chapman & Peter Garant are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Greg Chapman has sinced written about articles on various topics from Brakes, Cars and Air Filters. About the Author: Greg Chapman, of Greg Chapman Motors, is a leading has depended on since 1959. For more information please visit. Greg Chapman's top article generates over 40500 views. to your Favourites.

Peter Garant has sinced written about articles on various topics from Computers and The Internet, Family Travel and Alarm System. Peter Garant is writing articles about bad credit for his blog and articles about. Peter Garant's top article generates over 165000 views. to your Favourites.