With used car financing, you can get into the car you need now and pay for it over time. However, financing isn’t an option for every used car or even every buyer. At i.g. Burton Chrysler Dodge Jeep® RAM of Milford we’re sharing tips to help you get approved.
Get Pre-Approved
You can take all the guesswork out of financing by getting pre-approved. The pre-approval process is similar to applying – you’ll need to provide housing, income, and employment info. Then, you’ll get an estimate of your loan payment and rates.
Shop Within Your Budget
You’re much more likely to be approved for an auto loan if lenders can see that you aren’t stretching yourself too thin. Ideally, your auto expenses should be less than 20 percent of your take-home pay. Make sure to consider your debt-to-income ratio as well, which shouldn’t exceed 35 percent.
Make a Down Payment
Most experts agree that you should make a down payment of at least 10 percent on a used vehicle. A down payment is beneficial because it gives you less to finance and helps you save on interest costs. Plus, it helps demonstrate your buying power to a potential lender.
Consider a Certified Pre-Owned Vehicle
Sometimes, lenders don’t want to extend a loan for a used vehicle because they consider the vehicle itself a risk. They don’t want to give you a six-year loan for a vehicle that may only last three. A Certified Pre-Owned vehicle is meticulously inspected and reconditioned, so they know that these vehicles are reliable.
Apply for Used Car Financing in Milford, DE
There’s no reason to dread the car-buying process. We provide a streamlined financing process and can help you get approved in no time. Visit i.g. Burton Chrysler Dodge Jeep RAM of Milford to get started today!
