What You Need To Know About Interest Rates For Used Cars

What you need to know about interest rates and what you want to know might be at two different ends of the spectrum. Still, when you’re shopping for a used car in the Langley area, there are some basic pointers you will want to keep in mind to help the car buying process go smoothly. Interest rates can vary based on countless variables, so being armed with as much information about your situation as possible will be helpful.

First, you will want to have a good idea of what your credit rating, or credit score is. This is the first thing any lender will look at when determining credit worthiness, down payment, and interest rate. Many people don’t realize the impact an interest rate can have on car payments and the bottom line. In fact, some are so excited to get into a vehicle, and have no idea what their credit standing is, that they are practically willing to pay any interest rate. Set yourself up for a successful buying experience and know before you go.

Surprisingly, geography plays a significant role with interest rates as well. Get a feel for your local economy and lending situation by doing a little more research on the web or speaking with a local car dealership like us at Pioneer Motors Langley .

It should go without saying that your ability to prove income or your ability to repay the car loan will also have an impact on what interest rate you receive. There was a time when self-employed individuals, contractors, artists, online retailers, etc. would have to struggle to find financing. Those days are passed us and there are financing options for practically any scenario. Be sure to have bank statements, pay stubs, reward letters, or some other proof of the income you plan to claim.

There could be a number of factors that impact the actual interest rate you receive. Some factors you can control, and some you can’t. The important thing to remember is to do your research and know where you stand. Then, consult with our finance team to learn what you need to know about interest rates with them. The more information you have, the better the decision you will be able to make.

Finding The Right Vehicle

It can seem overwhelming to begin the hunt for a pre-owned vehicle, but following a few basic guidelines can help narrow down the search and get you moving in the right direction. One of the first and most obvious considerations is cost—after all, if you can’t afford the monthly payment, the most perfect vehicle in the world is of no use to you when it gets taken back by the financing company. Not only is this devastating to you on a personal level, but it can negatively impact your credit rating for years on end. It is a much better idea to pick a pre-owned car that fits easily within your budget, even if that means choosing an older model, or one without some of the bells and whistles you would have preferred.

That being said, with vehicular technology improving year after year, you may be surprised at just how many used cars have impressive features that fall into your price range. This is especially true if it has been many years since you have purchased a car. It is becoming somewhat rare for newer vehicles to come without features like automatic windows, door locks, and anti-lock brakes, though some models do still offer these as options. It may be helpful for you to create a list of what you absolutely must have in a vehicle, and another list of what you would greatly like to have, but can do without if it is not possible to obtain. You can bring these lists to the dealership with you to help your sales representative determine which cars best suit your needs.

Finally, if you plan on financing your new ride, you should get an idea of where your credit score falls. You can obtain a copy of your credit report and credit score directly from the credit bureaus, either online or via mail. Be sure to check your credit report thoroughly to see if there are any errors or inconsistencies. If there are, you have the right to submit a dispute request and have the credit bureau investigate the matter.