Car Financing Loans for Used Cars

Are loans available for used vehicles?

Some auto loan companies only lend money for new vehicle purchases, but the great news is that auto loans are definitely available for used cars. Our finance center at Central Avenue can help find car loans for people of any credit background who want to buy a used car.

As with new cars, used car loans will have various terms and interest rates depending on your credit, down payment, and other factors. In most cases, the interest rate for a used car will be just a tad higher for you, as compared to a new car purchase. It sounds a little odd at first, but the basic issue is that banks prefer to loan money for new cars.

When making car loans, finance companies would prefer that you have the car for a long time. When looking at used cars, the finance company may want to make sure your repayment period (how many months it will take you to repay the loan) will be over with as soon as possible. 

Essentially, the bank doesn't want to loan money for a car if the car is going to need so many repairs that you'll stop driving the car and stop making payments. This is why it's essential to buy a quality pre-owned vehicle from a reputable dealership. If the vehicle has been expertly serviced and prepared for market by a great service team, you and the banks will be more confident about spending money on it. And that means more financing options for you when applying for car loans.
If you can make payments over fewer months, you can typically get a lower interest rate. That means that your monthly payment might be higher than it would be with a longer loan term, but you'll pay less money overall. The terms, often ranging from 36 to 72 months, will depend on the financial institution, your cash in hand for a down payment, and your credit. However, regardless of your credit you can find car loans that suit your needs and get you behind the wheel.

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