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When you are looking to buy a used car you will probably want to raise finance to purchase it, whether this be through a loan or hire purchase or even leasing it. You probably don’t have the cash at hand to be able to buy the car, unless you have a fairy god mother or parents that don’t mind offering you a loan. So, you should look at a number of tips to help you on your way to financing the purchase of your used car with some finance that you can use.

In the current climate many banks are still willing to offer people loans for cars and financial organizations offer hire purchase agreements with car owners – they understand that the car is theirs until the loan is fully repaid and will only tend to grant loans to people who have a good credit rating. Also, you will have probably received a few letters from these different companies offering a number of different loans.

You will also find that the following information will have a set of information that will help you when looking for a company who will accept you for a loan for the purchase of your car and other tips that will help you in the selection of the different type and model of car for you.

Internet for Car Loans Finding information on the internet covering used cars should be easy to find. You should look for sites that have comparisons on that will help you when selecting a used car model and type to buy. There will also be a number of the finance company websites that will have a good amount of information on them that will help you gain information on the different types of loans that they can offer you and what you need to do in order to qualify and be successful with them.  Some of these finance companies will allow you to apply online and even communicate with one of their operators via online chat – you should take advantage of this and make sure that you are

Know Your Credit Rating You have now probably got a short list of the different finance companies that you want to apply to, to get a credit agreement for your used car. You shouldn’t just go a head and apply to them now, you should take a look at your current credit rating and see what your current rating to new finance companies will be. If you have a great credit rating then you will probably be able to get a lower interest rate on the total amount that you will borrow from the company and then be paying a lot less for the car and the privilege of taking out the used car loan in the long run. You will want to be able to get the best deal you can, so by having the information on your current credit rating you will be able to choose the companies that will best suit you and be able to get a better deal with the ones that you want.

Bad Credit? You Can Still Get a Loan Car Even if you have a bad credit history, you will still be able to apply for and get a loan from a supplier. The interest rate and payment terms that are offered to you in the deal will most probably not be to your liking, but at least you will be offered a loan and able to get your used car. Also, you may be asked to place a down payment, or commonly termed a deposit, on the loan and prove that you will be able to pay the monthly repayment on the loan.

Find That Great Dealer There will be many sales people at many dealers that are conscious of people needing finance for the purchase of a used car and this is why most will have established routes to set up agreements on your behalf with used car loan companies. They will generally have a few to choose from and will be the best judge of these finance companies to who will be good to request an agreement with if you are in the position of having a bad credit history. You will be able to speak to them and they can refer you to the best available company, now these companies that they choose may not have the best rates around as you will be tied down to a few different ones who will charge higher fees, and you should be aware that the sales person may recommend them because they will be paid a commission for referring you too, so you should be cautious.

Compare Rates and Terms The first deal that comes your way from the dealer for purchasing the used car is to be rejected, this is because it is probably not going to be the best deal that you are going to get from them and they will be able to move about a little to clinch the deal with you. Everyone who goes to buy a product, such as a used car, has a choice of what they do accept, and this will not matter whether you have great credit or poor credit. There are many different money lenders who only want to deal with people who have bad credit, and are there to help you rebuild your credit, but at a higher cost than ,many of the other lenders. In the loans market, there is so much competition that each company is attempting to provide you with a better quote than the next, and you are then able to put one company off against the other. so too is the same with many dealerships if dealers have similar cars in stock, but one has a higher price than the other, then you will be able to play one off against the other and secure a great deal.

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Posted under Used Car Buying Tips