Can I Finance a Used Car?

Even though it would be great to have a brand new car, the reality is many people can’t afford to get one. However, most of those same individuals could afford to buy a used car which is only a few years old.

Of course, not everyone has the funds to purchase a nearly-new vehicle outright. In those cases, it makes sense to spread the cost over a number of affordable instalments with a used car loan.

If you’ve never got a used car on finance before, the chances are high that you’ll not be fully aware of your options. Nor will you know how to choose the best finance deal for your needs.

Getting behind the wheel of a nearly-new vehicle and paying for it through an affordable finance plan is quite simple. Here’s what you need to know about financing a used car.

General information about getting a loan

A car loan isn’t too dissimilar to obtaining any other form of financing or credit. The key takeaway about car loans is they get secured on the vehicle that you wish to buy. Because of that fact, car finance is easier to obtain than an unsecured personal loan, for example.

Lenders generally want to know that you can afford to meet the car finance repayments. They also need to do a few checks to confirm your identity and income before they agree to finance your nearly-new vehicle. But, those checks are quick and straightforward.

What do I need before I apply?

Once you’ve decided that you’d like to apply for a used car loan, you should take the time to prepare for your finance application. The first thing to do is check your credit score online. Doing so will give you an idea of how easy it will be to get finance with lower interest rates.

Next, you should make sure you’ve got the documentation needed by the finance companies. That typically includes your most recent payslips, your driving licence, and proof of residency. Once you’ve got all that ready, you’re good to go.

More information on financing a used car

When you’ve got all the necessary documentation, you’ll then need to find a vehicle that you want to buy. Of course, it goes without saying that the car you choose should be one that you can afford to buy.

Generally, the older the car, the cheaper it will be to buy and so your finance costs will be lower. But, you should also bear in mind that older vehicles might present costly repair bills due to age and wear-related reasons.

Many people prefer to purchase a nearly-new car. Doing so gives them the freedom to have an almost-new vehicle but without paying the price of a brand new car. Even a car that’s just six months old could save you thousands of dollars!

Another factor to consider when financing a used car is how high a deposit you can put down on the deal. With some finance deals, you might not need to put a deposit down at all, but your instalments may end up being high.

If you put down a significant deposit, you’ll have less to pay each month and will most likely have a lower interest rate on your loan.

How to apply for a car loan

The good news is that applying for a used car loan couldn’t be simpler! At Awesome Car Loans, all you have to do is visit the online application page on this website. You’ll then have a few simple questions to answer, and once you’re done you can submit the form.

Once we’ve received your application, one of our representatives will contact you to double-check your details. We’ll also need to get a copy of your supporting documentation. At that stage, we’ll then find you the best used car loan deal from our lenders.

Conclusion

Getting a used car loan for your next vehicle purchase couldn’t be simpler with Awesome Car Loans.

Our friendly team will always find you the best deal from our panel of lenders. They’re always happy to answer any questions you might have about your application or the finance process.

Disclaimer -This page/article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

Credit Representative Number 496186 is authorised under Australian Credit Licence Number 389328.
ABN – 63 007 814 458. Member of MFAA.

Ph. 1300 696 902
Email – info@awesomecar.loans