With a used car there are some factors of what the banks or credit unions or other financial places look at for you to purchase the car you want regardless of your credit score.
Let’s break them down and help you figure out what you need and how you need it to purchase a new or used car in Columbus Ohio.
The car loan basics in Columbus Ohio
The interest rate is just a small amount that gets paid to the creditor so that you can borrow money to buy the used car.
Now lets talk loan term is the time you have to pay back the loan. The longer the term the more you could pay for the same car. So it’s ideal to talk down the car dealership to see what they can offer you like, $99 down for a used car in Columbus or $199 down in Columbus.
Depending on your credit you can pay a down payment of $500 down for a used car in Columbus but some car dealers require $2,000 income to make that happen.
What most auto lenders in Columbus Ohio look at when your buying a new or used car is the down payment, so the larger the down payment the better it plays out for you.
They also look at the age of the car they don’t want to give out a loan for a car over 10 years old.
Your credit score is going to help because it shows the history of paying your bills and your able to do it on time.
Your work history is something they look at, they want to see that you have a job to handle the payments for the used car your about to buy, so work away.
Your income to debt they want to see what your debts are and that you have the income to cover those debts because they don’t want to loan money out when they know you can’t cover the car payments.
Keep in mind your financing options on a used car
The financing options you have for a used car in Columbus are some of the following:
- Credit unions
- Online lenders
- Car dealerships
- Home equity loan
The best option to us is possibly a car dealership or a credit union because they are the most likely to work with you on down payments and credit scores.
You want your savings to be big enough for the down payment for any used car on the car lot because that’s going to save you money on the auto loan over the length of the loan.