Many car shoppers want to take advantage of a pre-owned car’s perks but are concerned about the cost of used car financing. While it can be more expensive, there are still many ways to get a great deal on a used car at Schmit Bros Auto.
How Financing Works
When you finance a vehicle, you apply for an auto loan to cover the cost of your loan from an outside lending institution. Then, you’ll have to repay the loan in equal monthly payments until the loan is paid in full.
The Cost of Financing
In addition to the cost of your vehicle, loans also include interest, which is a direct fee you owe your lender. Your credit score can seriously impact your credit score – lessees with higher credit scores typically get a lower interest rate and vice versa.
Used Vehicle Financing
Lenders are concerned about used vehicles’ warranty coverage (or lack thereof), reliability, and concerns that borrowers might abandon their loans. For these reasons, used car financing often comes with higher interest rates.
Lowering Your Payments
If you’re concerned about the cost of monthly payments, you’ve got options. For starters, you can make a larger down payment or apply your trade-in towards the total purchase to lower the cost. You can also get lower payments by extending your loan length, although you’ll owe more interest by the end of your loan. If your credit is the issue, consider adding a cosigner to help you secure a better rate.
Apply for Financing Today
We have a streamlined auto financing process at our dealership. You can easily secure financing at Schmit Bros Auto in just a few simple steps anytime. Click or visit to apply today!