Used Car Financing FAQs, Tips & Tricks
Can I finance a used car? Is financing a car a smart choice? Do I qualify for a used car loan? We hear these questions a lot from shoppers looking to invest in a high-quality pre-owned vehicle. Our team of experts is here to answer every single question you have and guide you through the used car financing process, so you get a car payment plan you’re comfortable with.
Read through our used car financing FAQs to get preliminary information about the process, then reach out to the team at our used car dealer in Sioux Falls for helpful tips and tricks. We’re here to make your used car buying experience a success, so let CarSwap support you every step of the way!
Used Car Financing FAQs:
01
What is a normal interest rate for a used car loan?
Typical interest rates on a car loan will vary based on the applicant's credit score, payment history and other details. Current rates can vary between 6-29%.
02
What is the best auto loan rate right now?
The best interest rate on a used car loan will fluctuate based on market conditions and other factors. However, if you have a credit score of 750 or higher, you're more likely to get the most favorable interest rate and terms for a used car loan.
03
What additional costs will I be responsible for when buying a new car?
CarSwap only charges a $199 documentation fee. Optional coverages are available to each customer including service contracts, total loss protection, cosmetic coverages and more.
04
Does my credit score impact my loan rate?
Yes. Your credit score will determine your interest rate along with some other variables including the value of the vehicle you're purchasing and your loan amount.
05
How do I get a car loan with no credit history?
CarSwap works with many first-time car buyers and can help you secure a car loan even if you don't have a cosigner. Ask about our first-time buyer loans today!
06
How much of a down payment do I need to finance a car?
Cash down will vary on a case-by-case basis, so you'll need to chat with our sales team about the down payment required on the particular vehicle you're considering.
07
What's the best length for a car loan?
This comes down to personal preference and lifestyle. The shorter the loan, the less interest you will pay but the monthly payment will be higher. The longer the loan, the more interest you will pay, however, the payment will be lower. Evaluating your budget is a good place to start.
08
Can I reduce my monthly car payments down the road?
Yes! Refinancing your car loan is an option if you are looking to lower your payment down the road. There are a few other variables to take into consideration as well, but our used car finance experts can help you evaluate all your refinancing options.
09
Can I sell my car while I'm still paying it off?
You can always sell your current vehicle even if you are making payments on it as long as the sales price is equal to or greater than your payoff. You will have to discuss those details with the buyer.
10
Can I add a warranty when I buy a car?
Absolutely! Warranties are available on almost every vehicle, though there are some exceptions. Speak with our sales associates about warranties on the specific model you'd like to buy, and we'll show you what's available.
Finance a Used Car Near Me
Are you ready to finance a car you love with an interest rate you’re happy with? Apply for financing and let CarSwap help you get the keys with a financing plan that you’re more than comfortable with. Whether you’re a first-time car buyer or you’re working on building up your credit score, we’ve helped many customers of various financial backgrounds get into the driver’s seat of the vehicle they need!