If you need a car and don’t have all the cash needed, financing is always an option. If you want to finance a used car, you have the choice of getting your own direct financing and we have listed the steps you need to take below. If you have a low credit score, "Buy Here Pay Here" lots may be your only option, but should only be used as a last resort because of the excessive interest rates they can charge.
We provide NO financing. All financing will have to be arranged with your bank or credit union.
These are the steps you need to take to secure a loan:
- Call local lenders. We recommend credit unions, then banks, then subprime lenders (usually found in strip malls).
- Speak to a loan officer and tell them you would like to get pre-approved for a loan to buy a used car. They may tell you to go to their website or take your information over the phone. Make sure to have your driver’s license and ss card.
- Most will contact you the same day or sometime the next day to let you know if your request has been approved. If you haven’t heard from anyone by the 2nd day give them a call. Doing this first will help you know what you have to spend including how much interest they will charge you for borrowing the money. They may require a co-signor.
- Ask them how they will give you the money so you will know what to tell the dealer.
- Now it’s time to find your car. Once you have located a car that fits within that budget, visit the dealership for a test drive and do the rest of your homework. If you have decide to move forward with the purchase, you will provide the dealer with the contact information for the loan officer you are working with so that they can send them the paperwork needed to finish the loan. This can usually be done while you wait.
- You will have to go to the lender to open an account if you don’t already have one, sign their paperwork and get the check that you will take to the dealer so you can pick-up your vehicle.
Generally speaking, credit unions have the better interest rates which means borrowing the money from them will save you some $$ especially if you have money to put down. The type vehicles we carry may limit the lenders who would like to help you but every lender is different so please check with yours if you have an established relationship to see what they will do for you. If you aren’t a member of a credit union, just pick up the phone and start calling. Most have relaxed the terms of membership to include any one who lives, works, goes to school or church within the counties or communities they serve.
A lot of our customers have had good things to say about eCO Credit Union and they have locations convenient to us so you aren’t driving all over town. They work with all types of credit issues on a case by case basis and seem to be flexible with their terms on the type of vehicles we carry.