Hardly anyone will get around buying a car and as a rule the costs should be kept low. However, since every new vehicle has a significant loss in value, only a used car will often be considered. Money should never be given away so that it is really a bargain.
The negotiations are very important
If you are interested in a car loan for used cars, you will have more opportunities, like an installment loan for free use. With the car loan for used cars, the vehicle is a security and is used in the event of insolvency. However, there are also conditions for granting a car loan for used cars. Overall, a vehicle should not be older than three years, otherwise it can be risky and the vehicle loses its value during the loan period.
The amount to be financed should therefore become smaller and smaller the older a vehicle is. A low amount of financing ensures that the loan can really be paid off on sale. The estimated duration of use should not be less than the contract term. If a vehicle is purchased that is three years old, the loan term should not exceed four years. Overall, the credit costs are always lower, the shorter the term.
Rarely is the effective interest rate below four percent on the car loan for used cars and this is usually four to six percent. The zero to two percent is also available from dealers, but you have to buy a new car and the term is relatively short. Usually this is done for vehicles where sales are relatively weak.
A comparison in the car loan for used cars
You can always negotiate with a used car dealer and try to give a discount on the purchase price and you can also negotiate for financing. Often it is also an advantage with the car loan for used cars if the old vehicle can be used as a deposit. Often a prospective customer has to take care of the sale of the old vehicle and if it was not sold when the purchase was made, the missing amount must also be financed.
It is important to pay attention to the special repayments, because these can often be very cheap. It then happens that a higher amount is spent than would have been necessary. So if you have an offer from a dealer, you can also compare it with an offer from the house bank. Anyone who has been a customer of a bank for a long time often receives cheap financing for a used car there.
The requirement for car loan for used cars
Similar rules apply to a car loan for used cars compared to the other loans. The maximum age is often 58 years and the minimum age is 18 years. However, some providers also take older people like 58 years old. It should also be a fixed employment relationship and not a fixed-term contract or the trial period. There is only the possibility that a loan term expires with the fixed-term period.