Financing is the most common way buyers acquire new or used vehicles. While used vehicles are typically less expensive than new cars, if you need to finance, it can negate the savings because interest rates are typically higher for used vehicles than new ones. Financing a used vehicle can still be a great deal as long as you are careful and understand the terms of the loan and how to reduce the costs of the loan or interest rates. Our finance team at Kia on the Boulevard near Camden, NJ, can help you score a great deal on used vehicle financing so you can comfortably afford the car you want. Here are three things you should know about financing a used vehicle:
1. You'll Save Money By Scoring the Lowest Interest Rate Possible
The best way to save money on vehicle financing (new or used) near Levittown, PA, is to score the lowest interest rate possible. The interest rate is a percentage based on your credit history, the number of months to pay back the loan, and other factors. The lower the interest rate, the less money you pay to borrow the money for your vehicle, and the faster you can pay off the loan and enjoy your vehicle payment-free.
2. Applying a Downpayment Will Help Reduce the Monthly Payment and Cost of the Loan
If you have extra cash on hand or a trade-in to offer, the value can reduce your monthly payments and help you pay off the loan faster. The shorter the loan term, the less interest you have to pay. A downpayment can help Burlington drivers own their vehicle free and clear faster.
3. You Can Shop Around or Get Pre-Approved Online
You don't have to use our dealership financing to pay for a used vehicle. Shop around Cherry Hill, NJ, and see if you can get a better rate for your used vehicle by choosing your preferred lender. Be sure to check out our specials to see if there are more savings opportunities that make our financing more competitive.