Breaking Down Used Car Financing
With the cost of new cars and trucks rising, consumers are turning more and more to pre-owned vehicles.
And that's a good thing! Today's market is strong for consumers, offering many choices with reliable and classy transportation options.
At Joe Bowman Auto Plaza, many of our pre-owned vehicles are Carfax one owners. Some of the Carfax vehicles have the balance of the manufacturer's warranty.
Regardless, all have either 30 or 90 day warranties depending on the year and the mileage. What's more, all of our vehicles must pass a 75-point inspection to be placed on the lot for sale.
As far as is humanly possible, we make sure the vehicle is safe and that all of the features are in 100% working order. With that in mind, take a look at the five questions most used car buyers ask.
Consumer Questions About Financing A Harrisonburg Used Car
When a customer is ready to buy a preowned Joe Bowman vehicle, invariably, there are questions.
• Will my interest rate be higher than if I bought a new car?
• What about the terms?
• Is it difficult to get financing for a used car?
• What if my used car or truck has high mileage?
• What if I'm in the process of repairing my credit?
Here are the answers to the most commonly asked for financing a previously owned vehicle.
Is There A Difference in Interest Rates for New vs Used Cars?
Usually. When buying a new car, manufacturers offer manufacturer-supported attractive financing on the latest models. These can be zero to 1% interest on the very newest vehicles.
Third party lenders also offer lower interest rates for brand new vehicles because it's a lower risk to the financing company.
Does that mean used car buyers get gouged on auto financing? Quite the contrary. While no lending institution can offer 1% on a preowned vehicle, there are some terrific used car interest rates on the market!
Our finance department shops around to find you the lowest interest rate possible. And, in most cases, we can meet or beat the rate your local bank offers you. When you finance through us, you'll get loan approval quicker with competitive interest rates and terms, allowing you to drive your new-to-you car home quicker.
If you choose to finance with your own bank, that's fine, too. We do it all the time! The difference is it takes a little longer to move legal paperwork between two businesses. In the end, we want you to feel completely satisfied with your purchase. That's important to us.
Is It Difficult To Get Financing for A Used Vehicle?
No. See above for interest rates for used car buyers. There are way more quality used cars and trucks on the road now than ever before. That means financing options have opened up as well.
What About Auto Financing for Vehicles with High Mileage?
Banks tend to shy away from vehicles with higher mileage, but we don't. We know that high mileage doesn't mean the vehicle will fail mechanically. If it's been kept in good condition, it can run many more miles.
High mileage used vehicles are often an excellent choice for high school or college students or simply as a second back up family car!
That's why we search our extensive financing network to find just the right lender so that you can get the vehicle that fits your lifestyle needs.
What If I'm in the Process of Repairing My Credit?
Yes, you can still buy a car with poor or bad credit! With our Second Chance program, we can help you buy a car without paying exorbitant interest, allowing you to re-build your credit.
Will your interest rate be higher? Most likely, but it will not be outrageous. We work with local lenders and large financial companies to find you the absolute lowest auto financing rate possible.
We want to help you re-establish good credit with payments that are affordable and allow you to build equity. Not sure what you can afford? Get pre-qualified here.
There you have it. The most often asked used car buying questions. Do you have other used car or used car financing questions we haven't answered here? We'd love to answer them for you. Stop into see us, call (540.274.5321) chat, or message us via Facebook!