Don't Get Used: Car Loan Self-Defense Tactics

When you are looking to get a used car loan, you need to understand the factors that are in the lender's favor. Used car loans are much more complicated than new car loans, and they pose a higher degree of risk to the borrower. When you are looking for car loan self-defense tactics, learn about the used car loan market:

Assessed Value of the Vehicle

The lender will come up with their own figure about how much the car you are purchasing is worth. They will use either the Kelly Blue Book or the National Auto Dealer's Association price in most cases. You should look up these prices independently so you are aware of any gross miscalculations on the lender's part.

Assessed Value of the Trade In

Your trade in value will affect the down payment on your loan. Check the KBB and NADA for your trade in as well as the new car. You should also seek an independent quote from another used car dealer so you have a standard of comparison.

Pay Attention to Terms

Interest rate is not the only factor you should be aware of to make sure you don't get used in your car loan contract. Check terms such as prepayment fees, modification fees and default terms. These will give you a glimpse at the whole picture the lender is offering.


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