Can someone describe what the process of getting a loan for a used car would be? I haven't had experience with it so I'm not exactly sure how it would happen. Do you just go into a bank or credit union and ask for/apply for an auto loan? Will they require you to have picked out a specific car (with a VIN number) or even a specific model, or will they pre-approve you for a specific amount that you're looking to spend on any car?

Thanks

 

Loans on Used Cars are Loans at higher Rates usually.

you need good credit, If your looking into a car like the G35, if you dont have Good credit you will only be able to get a high interest rate loan.

Get a Loan threw whoever your buying the car from, for the most part the rates will be according to your credit anyway.

Loan for a Used Car, or loan at any rate will depend on credit.

 

Used car rates are higher than new cars. Also, the rate goes higher as the car gets older and has more miles on it.

 

OP I see you are from ATL, you should look at the Infiniti dealerships here in Atlanta. When I was looking for my G35 last week the Infiniti dealers were running a 1.9 APR on certified used cars. I did not buy from a Infiniti dealer as they did not have the exact car I wanted however this may help you.

 

I've always bought used cars, and have financed most of them. Shop around with a few different banks/lenders for the best rate. have an idea of what you think your loan amount will be (include tax, title, ext. warranty, etc). You normally don't need to know the exact car you're going to buy. You should then be pre-approved, but different banks have different methods. If you are pre-approved, you have a little bargaining room with the dealer, because you may be able to walk in to the dealership and see if they will meet or beat your pre-approved rates. The dealer does not always have the best rate....

 

Go to your local credit union. I went through Patelco and my rate was 5% / 5 year loan. (749 Fico)

 

If you have not had a car loan in your name before you will most likely need a co-signer. I work at a dealership and lenders are extremely strict right now. There are such things as pre-approvals but it is not worth much because every lender has limits as to what they will loan on specific vehicles. Your best bet is to pick out a specific car first, give your credit info to the dealer to see what they can do, then compare their rates to local banks/credit unions on your own. I bought my G from the dealership I work at but did the financing through a credit union on my own for a better rate. I also saved money on the extended warranty through the credit union as well.

 

i just went through this same process. the conditions at my bank are:
-you need to have an exact vehicle picked out, with all the info, VIN# etc..
-the older the car is, the higher the rate, as stated above
-they required me to have 20% down on the car, they finance the remaining 80% of the negotiated purchase price
-they require a buyer/purchase agreement from the dealer to be sent to them

this really does seem like a pain in the-A, but it is one of the do-able options i have left. i have been shopping around for about two months trying to find something, with a decent financing rate. right now is a very tough time to get financing due to the economy. most dealers i visited claimed to be able to get me a "good" deal, then return with a 12-13% finance rate. yikes.

 

e-loan, lendingtree, other online loan websites