Used Car Loan Interest Rates
Most people have to take out a loan to buy the car they want, even if it is used. Used cars are often a better deal than new ones, especially if you buy a certified used car from a reputable dealer. However, finding the best used car loan rates can be a challenge, particularly for younger borrowers.
ProFed Credit Union offers low rates to even our newest members, as well as a lot of other benefits. Check out our rates, apply today, or read below to find out more about the process of purchasing a used car.
What Makes Used Car Loans Important?
Often, young borrowers do not have the cash or savings available or are interested in a ride that doesn’t fit their immediate budget.
Additionally, this younger age group is the least likely to get a reasonable rate from a bank. With less credit history, they are more vulnerable to predatory lenders. Good used car loans protect young borrowers and allow them to get a car that suits their needs.
Used car loans offer flexible terms, including no penalties if and when you want to pay it off early.
What is the Process for Getting a Used Car Loan Rate?
The first step is to get pre-approved for an amount. You then use this as your budget when shopping for a car. Preapproval does not affect your credit score, but applying for a loan does. When you are loan shopping, you can submit all of your applications close together and in doing so, it will have less of an impact on your score.
If you want to use a credit union’s used car loan rate, you must become a member before the loan is completed. This involves opening a savings account and making a small deposit.
Once your loan is approved, you can take the paperwork to the dealer and take possession of the vehicle. The loan is secured by using the car as collateral.
Click here to check out our rates and loan protection offers, apply now, or contact us to learn more about our used car loans and other services.