Want the Best Used Car Loan Rate? Use This Call Script

Finding the best used car loan rate is possible through an understanding of the major factors involved. When you are getting a used car loan, ask these questions.

  • What will be the total cost of the car after my loan is paid? The interest you pay in financing adds to the ticket price of your car.
  • How much am I really financing? You will likely be paying some down payment or trade-in. The remainder of the price will be your loan amount.
  • What is the real interest rate? Ask about your APR (annual percentage rate) and whether it is fixed or adjustable.
  • What penalties do I face? Some used car loan rates come with penalties if you pay them off early.
  • How much do I owe each month? Look at your monthly payment and ask if there are penalties to altering this.
  • How long until I pay this off? Shorter loans cost less. Consider how long you will have the car and what may change in your life in that time.
  • Can I refinance? If your situation changes, and you want a different loan, will you be able to refinance?

Many used car businesses now offer financing direct from the lot. This may be convenient, but it is not always your best option. Ask these questions of the seller as well as your bank and Internet lenders.

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