How to Finance Used Vans and Used Cars
If You Need Bad Credit Car Loans or Not, Read This!
Buying a car is the second most important decision you will make during your lifetime! You want to be prepared and informed about vehicles and used car dealers before you apply for auto financing. At Super Dave's Auto Sales, we provide useful and valuable information and tips on the concept, calculation and responsibilities involved in financing pre owned cars, trucks, SUVs or used vans. Our dependable and knowledgeable team gives you everything you need to know to finance the best used vehicle for your individual transportation needs. We are the experts when it comes to providing people with bad credit car loans. We supplement vital details in our finance pages with advice about the consequences of a default on a pre owned auto loan. Eliminate the confusion and complication of financing used cars by following these easy steps!
Calculate Payments for Used Cars!
Super Dave's Auto Sales say first things first! We inform you about the value of used cars when you decide how much you can afford to pay on your car. We recommend that your monthly car payment represent no more than 20% of your disposable income. After bills and living expenses are paid, the amount that's left over is what you can use toward a quality car purchase. The cost of pre-owned cars or used vans will not just include the monthly car payment. You must consider registration fees, license plates, taxes, insurance premiums, fuel costs, maintenance, repairs and parking as well. Calculate this before you start shopping! We strongly advise you already know your monthly auto expense before you request auto finance.
Educate Yourself by Comparing Car Costs
Most car dealers have a good idea of which used cars maintain their value and which depreciate at the slowest rate in the industry. If you are entertaining the purchase of a used vehicle from a dealer, ask them if they know the vehicle's history and if they can give you a copy. It is important to note there are three valuable resources you can access to obtain information on the car you are interested in; search through your local Auto Trader, find the price in the Canadian Red Book Vehicle Valuation Guide or the Canadian Black Book. The Canadian Black Book is the leading, most trusted source for the value of used cars for over 50 years providing consumers with a vehicle's trade-in value, future value and average asking price.
A Used Car Dealership Loan Is a Smart Move!
When you apply to finance a vehicle, you need to decide how long you want to take to pay off your loan. Usually, you look for the shortest terms and lowest interest rates. A fixed rate car loan is generally better than a variable rate car loan as it takes less time to pay and the interest rate doesn't change. With a fixed rate, there are no worries when interest goes up. A variable car loan is only good when interest rates go down.
;Ideally, a loan term should be anywhere from 2 to 5 years. You will be in a great position to apply for a short term loan if your credit score is high. But, what about those whose credit is not as good as it could be? A longer loan term gives you the opportunity to build a good credit history with the added advantage of shorter monthly payments. Your interest rates will be higher; however, you will get ahead in the long run and buying your next car will be easier.
Know the Value of Used Cars!
Be aware that most cars lose 18% of their value in the first year. Simply put, the older the car is; the lower the price. When you choose our used auto financing, we negotiate the lowest price and payment schedule we can to suit your personal finances and budget. You have the added assurance that our certified pre owned cars are inspected, test-driven and thoroughly re-conditioned.
The financial definition of default is a non-payment of an agreed upon monthly installment figure. Pay close attention to the difference between a default and a deferment. A car loan deferment is a plan created between the lender and the borrower to detail the postponement of payments for a specified period of time. A default has serious consequences that affect your credit rating and credit score whereas a deferment can be negotiated when a default is imminent without affecting your credit score. Both will be posted on your credit history, however, many lenders will view a deferment as a positive, proactive indication you are attempting to rectify your financial situation and pay off your loan. A default posting will definitely have a negative impact on your credit score!
A default on your car loan will force the lender to repossess your vehicle. You will lose your down payment and any monthly payments already submitted. If this vehicle was your only means of transportation, you will have difficulty getting to work and lose the convenience to travel easily to anywhere you wish to go. Defaulting on your car loan will follow your credit history for seven years. You will have problems obtaining loans for anything and, if you do get loan approval, the payments and interest are going to be excessive and costly. Even if you develop a good history of financial responsibility afterwards, it will stay on your record until the whole seven years are over. One way to avoid default is to approach the car dealership you bought your car from to renegotiate your monthly payment plan and request re-financing. Avoid car loan default in any way you can!
Super Dave's Auto Sales is one of Nova Scotia's most reliable used car dealers and especially proud to offer our Re-financing Program to prevent default. We provide you the solution to keep a pre owned car, truck or SUV. We ask you to consider one of our bad credit car loans if you are on shaky financial ground. Our highly qualified mechanics are adept at fine tuning our pre-owned cars and used vans. Experience safety and comfort when you drive away one of our exceptionally well-conditioned vehicles.
Super Dave's Auto Sales invite you to browse our comprehensive finance pages or to visit our FAQ page for more details on auto finance. Contact us anytime to discuss how you can obtain a great car loan at our dealership! Comments and questions, just ask! We are more than happy to assist in your search for answers.