How to Get the Best Financing on Your Used Car

Most dealerships offer guaranteed financing for new or used vehicles, but is the dealership the best place to find the lowest rates available for your auto loan? Maybe not, but be cautious of fly by night companies out there  that are offering  guaranteed, same-day loans and other offers that sound too good to be true. The rates that these companies are offering are virtually always higher than a bank or credit union and they may even specialize in loans for those with bad credit..

The best way to finance your car is to get a loan from a bank or credit union. You’ll probably get a lower interest rate and you won’t be confused by negotiating the price of your new car along with the interest rate on your loan at the dealership. In fact, if you walk into a car dealership with a pre-approved car loan, the buyer is in a great position because the negotiations are not mixed with the price of the new vehicle and the interest rate.

Consider a simple interest loan, which lets you pay interest only on the remaining amount of your loan, instead of the usual installment loan. The bank will figure out the total interest on your loan and set up a plan where you’ll pay the same amount each month for the life of your loan. That’s better than a front-end installment loan, which requires you to pay interest each month on the full amount of the loan.

Of course if you are turned down by the bank, the next best choice is dealer financing, see your local Cross Keys Auto Dealer in Hazelwood and ask about our guaranteed financing program today.