A Guide to Buy a Used Car Finance

by : John Marshall



Making sure to finance a vehicle properly will greatly reduce the cost of one next used car. Auto Financing is a general term meaning how one pays for a used vehicle. In most cases, used cars are financed by taking out an auto loan to buy. This involves getting a credit check. By checking ones credit history first, and answering all the tough used car finance questions up front, one would be more prepared to handle issues at the dealership.

Although one can take out a bank loan to ones Used car financing, many people like the convenience of getting a car financing through a dealer. People can walk in, choose a used car, fill out a credit application and drive away in a used car. They can do this at night or on the weekends when banks and credit unions are closed.

Say for instance, if an individual is considering a used car finance for ?17, 000, make sure one knows what all the options cost and add on the 'destination fee' (all cars include a destination fee, typically between about ?200 and ?500). Once one has this total, find out what ones sales tax is. If it is 6%, convert it to a decimal number by adding '1' in front of the number. So 6% becomes .06. Now use the following formula:

Cost of the car + option + destination fee X sales tax.

In the instance, let's say that the car is ?17, 000 and the options total ?500. The destination fee is ?350.

?17, 000 + ?500 + ?350 = ?17, 850.

To get the sales tax, multiply this by.08:

?17, 850 X .08 = ?1430.00
Added to the cost of the car, an individual arrives at the grand total of ?19, 280.

Considering the above mentioned imaginary numerical into account, borrowers are advised to be in touch with the current market analysis. The instability in the market at rates helps borrowers get financing at low rates.

There are galaxies of sites, and so do lenders, available online for the used car finance. The need is only of right selection of a lender, who can provide all the financing facilities at easy terms and conditions.