Getting a Fair Financing Rate on a Used Car

We have all seen the little kid screaming at the store because he has been denied of something that he wants. Well, unfortunately many of us fall into this same category. It seems as credit has become more available in every facet of our lives we have been more than willing to abuse it.

Don't be a schmuck and feel like you deserve a vehicle that is out of your price range. Remember, these lenders are usually paid commission so they will twist things around in order to get you to commit. Here are a couple of the more common tactics used in the small rooms at dealerships.

1. Extending the note from the traditional 48-60 months to 72-84 months to reduce the cost of your monthly payments.

Most experts say you shouldn't borrow for more than 60 months. Personally I feel like 48 should be the maximum. Always remember that the longer that you borrow the more interest you will pay on the loan.

2. Moving you from buying to leasing your vehicle.

Have you noticed that virtually every vehicle ad that you see on TV or in the newspaper offers options for leasing instead of buying? Their is a reason why they are doing this. People are often gullible and ask only how much down and how much a month. This helps explain why you see 40K SUV's parked in front mobile homes that might be worth half that much.

I suppose for people in certain situations leasing can alright. I personally believe that it's the worst way to own a car. It seems as if we have been programmed to believe that we must have a car payment for our entire lives. Many vehicles if properly maintained can last well over 200K miles. Over the coarse of your lifetime you could fund a huge part of your retirement on money your wasting leasing cars.

A former career car salesmen tells all and gives away the insider secrets at this link Getting a Fair Financing Rate on a Used Car

It's important to know your credit score before you apply for auto financing. Fortunately you can now get your credit report free of charge. Just go to Annual Credit Report fill out the form and get your credit history. Your credit score will be the determining factor for getting a fair financing rate on your used car purchase.

It's also important to get more than one opinion when applying for a car loan. Don't take the dealerships word when they say the best rate your going to receive is 10%. Many dealerships work with lending institutions at a standard interest rate. This doesn't mean that the dealership won't try to bump that rate up a point or two if they believe they can sucker you into signing the papers.

This goes back to our growing dependency on using credit to buy things we can't afford. Putting some money down will help you get a fair finance rate on your used car. Experts recommend 20% but anything is better than nothing.

If you are looking into financing for buying a used car you need this insider information. Getting a Fair Financing Rate on a Used Car