Used Car Financing Tips

When it comes to financing a used car, there are a lot of moving parts that you need to pay attention to. In this guide, we at Feldman Chevrolet of Lansing will give you all the information you need to jump into your next used car financing process with confidence.

Below, shoppers in Lansing, East Lansing, and Grand Ledge will learn about making a budget, what fees come with financing a used car, and more. Read ahead to get started!

 

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1. Create a Reasonable Budget.

The first thing you need to do when you’re considering buying a used car is to put together a budget. Take a look at your current expenses and your monthly take-home pay—however much you make after taxes. Then, take roughly 15-20 percent of that as your budget. This is flexible depending on your income, but you shouldn’t go much higher than that to make sure you can keep up with your payments.

2. Don’t Forget about Extra Fees.

On top of your monthly payments for your next used car, there are several other types of payments that you can expect to make during the buying process. You should be prepared to pay the following fees:

• Title and registration fees
• State sales tax
• Early payoff penalty

You can also expect to make a down payment that’s around 10-25 percent of the vehicle’s total price.

3. Consider Your Financing Options.

Your first option for financing your next used vehicle is buying it, which means that you will own the vehicle after you’ve paid off the loan for it. However, you do have the option to lease a used vehicle if that makes more sense for your budget and lifestyle. Only certain auto manufacturers let you lease used vehicles. But you can also look into certified pre-owned vehicles, which are often easy to lease.

4. Do Your Research.

After you’ve picked out a used car that you can see yourself in, you’ll want to do plenty of research. Use Kelley Bluebook® and Black Book® to get price estimates on the exact vehicle that you’re looking at to make sure you’re getting the best deal.

You should also investigate the vehicle’s car history report to make sure it’s in good condition. This should be readily available for you at the dealership, but you can easily find it online if you need to, using resources like CARFAX®.

Ready to Finance Your Next Used Car?

We at Feldman Chevrolet of Lansing are excited that you’re thinking about making your next car a quality used car. After reading through our helpful used car financing tips, we hope you’re ready to get the ball rolling on finding and financing your next used car.

At our dealership, we offer an expansive selection of quality used cars, as well as a variety of financing options. Shoppers in the areas of Lansing, East Lansing, and Grand Ledge can browse our inventory on our website and schedule a test drive by giving us a call!

 

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