Imagine buying a car you are super excited about it can be new or used. You sign the paperwork for the car meaning the auto financing then you realize you’ll be making auto loan payments seven years later. But if your heart is set on a new or used car we can help you by considering a few options on auto loans.
Auto Loans For Vehicles
We want to make the auto loan process for both new and used cars simple even if you have bad credit, poor credit, or good credit we have a number of qualifying car dealerships that can help you get that financing started and get you back on the road.
Looking For Used Cars?
Auto loans with bad credit for used cars can be hard to come by for most subprime car buyers and most of the time car dealers want you to have a credit score of 600 or above. Get started with bad credit or poor credit by financing a car dealer near you.
Looking at 84-month auto loans
That can be the truth as more car dealerships and lenders are offering 84-month auto loans.
A seven-year auto loan doesn’t seem too bad. After all, a longer loan term means smaller monthly car payments right? But it doesn’t mean that it’s the best idea or choice unless it’s the only one given. Here is what to consider before signing an 84-month auto loan.
For a while, the longest auto loan term you could get from an auto lender was 72 months in a nutshell that’s six years. With an 84-month loan, borrowers are tempted with the smaller payments but it’s a long time to pay for a car.
But keep in mind it’s only appealing if you have a budget for used cars and can afford a shorter loan term.
Now the thing to think about is what you can truly invest into a car before you go a sign for an 84-month auto loan. You want to shop for used cars within your budget and have a down payment in mind or shop around for the best car deals in your area.
A down payment for long-term auto loans
If you don’t have at least $500 to put down on a used car in your area an auto loan of 84 months is just going to suck you dry. There is no upside for no money down cars with an 84-month auto loan.
Ideally, if you’re buying a used car at $20,000 you want to pay on the car for no more than 48 months the interest is going to get you. Yes, the smaller monthly payment looks nice but the interest won’t. Not to mention this is all considering that you have good to decent credit.
You could go up to a 60-month car loan on a used car but that only saves you about $1,200 on the life of the auto loan. So if you need a car or want your dream car and have to do an 84-month auto loan the car is out of your price range and you need to go back and organize a better-used car budget.
Cars lose value year after year so making a long-term commitment to a used car is not a good idea. About 60% of new cars lose their value after about five years so you’re going to want the car to last for double that after you pay it off and that also means it doesn’t have a lot of auto repairs over the years.
Refinancing after a while on used cars
There are some good options for an alternative to an 84-month auto loan and maybe to refinance after two to three years this might get you a lower car payment at a better auto loan rate.
Leasing a car might be in the cards for you
You can lease and not buy a lot of people look at leasing over buying because it’s easier and can be less to maintain for a car. Also, look at buying cars that are coming off a lease you might be able to get the car cheaper than a new car.
Leases can offer smaller car payments as they go off the depreciation and not off the sticker price of the car. And after you lease the car you may have a chance to buy the car outright depending on what the contract says.
One other thing you can do is take some time and save up for the used car instead of getting into an 84-month auto loan right off the bat. Some car lots may ask for $500 down on used cars in areas of New York or even Chicago area car dealers may ask for $500 down on a used car.
Why look at larger down payments for used cars
Other car dealers may ask for more such as $1000 down for a used car depending on the make of the car and your credit score.
If you can’t find a car dealership that will work with you on financing used cars with bad credit or low credit you may want to find no money down car dealers or buy here pay here car dealers in the area of Indianapolis or Boise Idaho that can help get you the auto loan you deserve. The best recommendation we can give car buyers is to shop around used car lots check out their inventory online and even call if you want to see what they have.
Expand your used car search
You can even expand your radius for used cars to 50 miles instead of 25 miles or see if the car dealership will ship cars in from other states. There are a number of ways to find used cars you just have to be willing to be understanding.