Purchasing a Used Vehicle

Published: December 17, 2009
This entry was posted in Auto Credit
Keys on top of a window stickerMany banks will not lend money for a used car that is any older than five years. Banks will charge at least 2% higher APR on used cars than they charge on new cars. Online lenders usually offer better rates on used cars than banks, but if you are considering an online loan, it is wise to do your homework to make sure the business is legitimate (see blog titled “Online Loans”)
If you have a credit score of at least 680, you can select the lowest APR available for your auto credit. Never pay cash for a deposit on a car or you could lose your money in the case of a deal falling through.
Cars that are over 5 years old are not usually worth very much on a trade in because the banks won’t loan money on them and so the dealership has trouble getting them re-sold. So as far as getting the best trade in on your old car, it is best to trade it in when it is four years old or newer.
“Certified Used Cars”  are cars that have been inspected and repaired, then an extended service plan is offered, most companies also throw in a free towing plan as well. Make sure that you do your homework, some certified cars have been known to have an accident on their car fax report, so don’t assume that because the used car is certified you will automatically get a “like new” vehicle. If you can get a 90 day warranty, then you’re somewhat protected. Ignore verbal promises on all negotiations when purchasing a used vehicle. Many 90 day dealer warranties only cover the power train, and nothing else.If the engine goes out next week, does the warranty cover it, make sure to tell them to put all verbal promises in writing.
If you are in the market for a certified pre-owned vehicle, stop by St. Louis Auto Stop in Hazelwood today and ask about our guaranteed credit program.

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