Cheap Used Car For Sale

Written by Abby Luttrell
Bookmark and Share

If you're interested in a cheap used car for sale, you may not have given much thought to saving money on your auto loan. Yet one of the major expenses when you purchase a used car with an auto loan is your interest rate on the loan. How can you bring that down before you buy the car?

Your Interest Rate--A Hidden Expense in Your Cheap Used Car For Sale

Your first step is to find out what your credit rating is, and your credit score. You can do that on the Internet, on the sites for Equifax, Consumerinfo and TrueCredit. Your credit rating translates to your interest rate on the loan. You should definitely know your credit rating before you begin negotiating. Otherwise the money you save on that cheap used car for sale will be more than eaten up by your high interest rate on your loan.

If your credit score is below 680, you'll keep getting rejected for credit. In this case, don't keep applying, because this will further reduce your score. Instead, go to a website specifically for people with low credit scores. AutoCreditFinders is one such site that specializes in finding underwriters for high risk auto loans. Even if your score is as low as 525, with a previous bankruptcy and/or tax lien, your chances are good for a loan.

If you have bad credit, the best way to clean it up is by yourself. Beware of "credit doctors" and "consolidation loan" scams that promise to help you buy a used car online. Go to free web consulting sites instead, such as DebtWizards, and learn how to fix your credit yourself. Often the best way is to be working for at least six months and to have no late payments for six months. Your auto loan can actually be instrumental in helping you clean up your credit. Recommended used car dealers on the web will work with you to fix your interest rate and help create do-able monthly payments.

Bookmark and Share