Used Car Financing - Frequently Asked Question
Used Car Financing - FAQ
If you're in the market for a used vehicle at a competitive price, you've come to the right place! At Elmwood Car Sales Ltd., we pride ourselves on delivering our customers quality used cars that don't break the bank. Browse our used inventory or visit us in person today! We are conveniently located in Edmonton, Alberta, just a short drive away from St. Albert, Sherwood Park, Fort Saskatchewan, Spruce Grove, and Leduc, in Alberta. Keep reading to learn more about some frequently asked questions about used car financing.
1. How do I finance my used vehicle?
Financing a used vehicle is an excellent way to own a car while on a budget. Financing a used car means that you are getting a loan to pay for the vehicle so that you can pay it off in increments rather than all at once. There are options for financing a used car, and two of the main options are through the bank/credit union, and the other is through a dealership, such as Elmwood Car Sales Ltd.
2. Is it better to get a car loan from a bank or dealership?
It depends on many factors based on your budgeting needs and financial situation. Going through the bank or a credit union is an excellent option if you buy privately. This ensures that you are getting the right payment plan for your budget. This takes a little more time on your part to sort out the particulars. However, when you go through our dealership, we conveniently work out a plan for you based on your wants and needs. We have expert financing staff that work diligently to find the right payment plan for you without the hassle of trying to figure it all out yourself.
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3. How can I get a lower used car financing rate?
There are a few ways to lower your financing interest rates and monthly payments. Here are some of them:
- Make a higher down payment at the time of purchase
- Trade in your used vehicle to get guaranteed value towards the new or used vehicle of your choice from our lot
- Have a good credit score or have someone with a better credit score co-sign the loan
- Finance a car with a lower purchase price
4. Can I finance a used car with no money down?
Yes, you can finance a used car with no money down, but it will probably cost you more in the long run. By not putting any money down at the time of purchase, your monthly payments and interest rates will be higher, or your financing plan will take longer to pay off, leading to more interest being paid.
5. How does my credit score work?
Your credit score represents how much risk you are to financial institutions when it comes to paying off debts or loans. Your credit score is considered whenever you are looking to take out a loan for things such as a mortgage or financing a car. Your credit score goes up and down depending on your spending and repayment habits. You can build your credit score by starting a history of making regular payments for small loans.
Having a high credit score is beneficial because it leads to lower financing rates and higher limits on your loan, so you can finance used cars that are more expensive, giving you more options in the long run. Having a lower credit score means you are at a greater risk of missing payments, leading to higher interest rates and lower limits.
Don't hesitate to contact us if you have any other questions regarding used car financing or anything else you may be curious about. Our kind and knowledgeable staff at Elmwood Car Sales Ltd. are always ready to help. We can't wait to hear from you!