• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

4 Options for People Looking to Get a Used Car Loan

By Sabado Domingo

Driving is a part of life in the United States. We live in a large, spread out nation, which requires the use of vehicles to get from place to place. Many people choose to buy new cars. The US recently saw many years in a row of record new car sales. In 2016, Americans bought 17.6 million new cars at an average price of $35,309. While that seems substantial, it comes nowhere close to the volume of used car sales. In a typical year, between 35 and 45 million used cars are bought in the US.

There are many advantages to purchasing used. After a few years, it becomes clear if the model has any inherent issues. You can also get much better deals on used vehicles than new ones. But even if you’re purchasing a less expensive car, you’ll probably need to get some form of financing for it. Here’s where to get a used car loan.

Your Local Bank or Credit Union

You might intuitively go to your normal financial institution when looking for a used car loan. There are a few advantages to getting a loan from your local bank or credit union. The people there will likely know you better than at other lenders. This neighborly attitude is good for your peace of mind. They’re probably not going to trick you into signing up for a loan they know you can’t afford. The drawback to going with one of these options is that local banks and credit unions can often have lending restrictions. This might disqualify some people from being able to get a competitive loan, or even getting one at all.

Online Auto Loan Specialists

You’ll definitely want to shop with specialized auto loan experts. When you work with an online car loan organization, you’re talking to people who have bountiful expertise in this field. That specialized knowledge will help you get a loan for a used vehicle regardless of your situation. Even people with bad credit, or who have recently gone through bankruptcy, can negotiate with these lenders. You can often score deals on vehicles if the lender partners with used car dealerships. Additionally, a huge bonus of applying for a used car loan online is that you can do it at your convenience. Having unconventional work hours won’t hinder you from getting a great loan.

National Branded Banks

People who bank at a national chain will often try to go there for their financing purposes. Sometimes this works out great, sometimes it doesn’t. A lot of times big banks will be less willing to work with people who want to finance a used car, especially if they’ve had credit issues in the past, or don’t have high balances in their accounts. While this route will work for some people, it’s certainly not the best choice for everyone.

On-Site Dealership Financing

You’ll find many used car dealerships will offer direct financing to customers. This is an enticing option because it seems much more convenient than going to a separate lender. However, you should make sure that you read the fine print when going over a loan from a dealership. A lot of times they will include hidden fees that can end up making the loan unaffordable for you. And if you can’t pay the loan, they’ll be able to take back the car. If you’re going to take this financing route, make sure you trust the people. Otherwise, you might end up losing a lot of money.

It’s important that you take the time to understand the contents of your used car loan before signing any paperwork. Failing to pay back a loan can be a huge problem for you down the line. Finding the right loan with the right lender will make buying a used car an infinitely better process.

Photo Credit: KB35

2 Comments December 7, 2018

Comments

  1. 1

    George Raymond says

    4 options for those people who are looking to get a used car loan. 1. Your local bank and credit union, 2. Online auto loan specialties, 3. National branded banks, 4. Onsite dealership financing. Hence this is a nice article!

    Reply
    • 2

      Len Penzo says

      Thank you, George.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Polls

What do you think is the smartest career decision for young people today?

View Results

Loading ... Loading ...

Recent Posts

  • A Few Thoughts from Aunt Doris: How to Make Ends Meet
  • Grandfather Says: Happiness and Living in the Right Mold
  • How to Get a Good Job Without a College Degree
  • Clever Ways to Save Money On Your Next Car
  • 18 Fun Facts About Money That You Probably Didn’t Know
  • Black Coffee: More Pie In the Sky
  • How to Get Fast Approval on Installment Loans
  • Should You Consider A Pre-Settlement Loan In a Personal Injury Case?
  • What Barfing Out of a Bus Window Teaches Us About Managing Money
  • 7 High-Paying Tech Jobs That Desperately Need Women

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 30,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. 25 Examples of Shrinkflation That No Longer Fool Consumers
  2. 2. The 10 Worst Things I Ever Bought
  3. 3. 7 Perplexing Money Questions Without a Good Answer
  4. 4. My Cola Taste Test: Is Coke Really Better Than Pepsi?
  5. 5. The Real Secret to Becoming Rich as a King
  6. 6. Planning a Wedding? Here Are 9 Ways to Ensure You’ll Pay Too Much
  7. 7. Economic Collapse 101: How to Prepare for Water Supply Disruptions
  8. 8. A Simple Test to Know If It’s Better to Rent or Buy a Home
  9. 9. The Big Secret the Banking Industry Doesn’t Want You to Know
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2021 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2021