|
A low credit score doesn’t mean you can’t buy a car. There are a number of ways that people with poor credit can find a loan to purchase a vehicle. It’s even possible to find a loan with terms that won’t bust the budget. If you’re seeking pre-owned cars for sale in Anchorage, start by finding a loan. Here are some tips to help those with lower credit scores find reasonable car loans. Shop Around There are a number of ways to do this. Many car dealerships offer their own financing, your bank likely offers car loans, and buyers can also look to the Internet to find loans. Those with good credit can expect to pay an interest rate between 4 and 5 percent. Subprime loans have interest rates between 10 and 13 percent on average. Generally, a lower interest rate is best, however, buyers may need to weigh that among other loan factors, like the length of the loan. Examine Loan Terms A 5-year loan may carry a higher interest rate than a 3-year loan. The higher rate means you’ll pay more in interest, but the longer life of the loan may mean your payments are more affordable. Experts typically recommend getting a loan at the lowest possible interest rate for the least amount of time, but you should weigh that against how long you plan to own the car, maintenance costs, and other factors that may make it worth your while to accept a longer loan term so you can buy a slightly better car with a higher price tag. You’ll also want to weigh the loan terms against how long the car will run. It just doesn’t make sense to take out a 6-year loan on a car that isn’t likely to be running for 6 years. Read the Fine Print Some car loans, especially those that specifically target subprime borrowers, have hidden fees or loan requirements that make the car more expensive. For example, some loans may require the purchase of warranties or after-market services. These loan add-ons can significantly increase the cost of purchasing the car, so beware. Make a Down Payment Put as much money down upfront as you possibly can. A large down payment will help you secure more favorable loan terms, and every dollar you pay up front is one dollar less that you have to finance. That means lower monthly loan payments on any of the pre-owned cars for sale in Anchorage.
Related Articles -
Pre-owned, Cars, For, Sale, in, Anchorage,
| 
