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Compare car loans for used cars

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A preowned vehicle can be the right choice for your next car. Find out how you can finance a used car.

When you buy a new car, it loses 20% of the value the moment you drive it off the lot. Buying a used car can help you save money in monthly repayments and fee. And when you buy a preowned car, you have more room to negotiate on the price.

If you don’t have the full amount to buy your next car, here are some financing options available to you. Car Loans

Our top pick: Car Loans

Get matched with a local car dealership to finance your car purchase. Bad credit, no credit OK.

  • Specializing in 'buy here, pay here' car loans. No banks or credit unions.
  • Typically hear back from a rep within 24 hours.
  • Free loan-matching service. No obligation offers.

    Compare car loans for used cars

    Rates last updated September 24th, 2018

    Reveal your potential loan offers and rates

    Answer two quick questions to filter the loan offers and get the best one for you.

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    Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
    Name Product Product Description Minimum Credit Score Term of Loan Requirements Car Loans
    Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
    Varies by lender
    Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
    Auto Credit Express Car Loans
    Get connected with an auto lender near you, even if you have bad credit.
    Typically 3 to 6 years
    Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.
    LendingClub Auto Refinancing
    Lower your monthly car payments and save on interest through a fast and easy online application process.
    Fair or poor credit
    Minimum of 2 years
    Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
    MotoRefi Car Loan Refinancing
    A car loan connection service for borrowers looking to refinance.
    1–6 years
    Must have an income of at least $2,000/month and have a vehicle with less than 100,000 miles. Car Loans
    Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.
    24 to 84 months
    Must have a Social Security number; make $24,000+/year; have no open bankruptcies.
    LendingTree Auto Loans
    Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
    Typically 1 to 7 years
    Must be a US citizen and 18+ years old. Must have good to excellent credit.
    Capital One Auto Financing
    You could qualify for a car loan of up to 40000, but not all dealers accept this bank's financing.
    Good to excellent credit
    36 to 72 months
    Valid street address; existing Capital One accounts in good standing. Car must be a 2006 model or newer with less than 120,000 miles.
    Wells Fargo Auto Loans
    Auto loans with high loan amounts to cover your car purchase or refinancing needs.
    Good to excellent credit
    1 to 6 years
    Your income and assets must support your existing debt obligations and the desired loan amount.

    Compare up to 4 providers

    4 types of loans you can use for a used car

    You have several options when it comes to loan for a used car. Some of these include:

    • Secured car loan. With secured car loans, lenders use your car as collateral. A secured loan is helpful if you have cad credit and can’t get a loan at a decent rate. However, if you default on the loan, the lender can repossess your vehicle. Always read the terms and conditions to see if you can use your used car as collateral, as some lenders often have restrictions to this.
    • Unsecured personal loan. Unsecured personal loans are generally offered to customers with good credit. These loans don’t require you to offer your car as collateral for the loan, but can results in higher interest rates and additional fees.
    • Home equity finance. Home equity financing is another option that allows a homeowner to borrow against the equity value of their home. This option can be risky because you’re putting your house up as collateral.
    • Dealer finance. Nearly every dealership you walk into will offer in-house or third-party financing to assist you in buying a car.

    How old of a car can I finance with a used car loan?

    If you want to use your used car as security for the loan, here’s the criteria for what each loan provider will accept:

    Loan ProviderMax. age of carMinimum loan amountMaximum loan amount
    Auto Credit ExpressNoneVaries by lenderVaries by lender
    car.Loan.comVaries by lenderVaries by lenderVaries by lender
    myAutoloan.com10 years old$7,500$100,000
    LendingTreeVaries by lenderVaries by lenderVaries by lender
    CarsDirectVaries by lenderVaries by lenderVaries by lender
    Springboardauto8 years old$7,500$45,000
    Bluesky Auto Finance8 years oldN/A$30,000
    CarFinance.com8 years old$7,500$45,000

    Should I put a deposit on a used car?

    A deposit may be requested by a dealer if you don’t have financing available after you negotiate the purchase price, the dealer needs to order your vehicle from a factory or if the dealer you’re working with needs to exchange vehicles with another dealer in order to match your purchase requests.

    In any of these cases, it may be necessary to leave a deposit for your used car, but that doesn’t mean you have to settle for the dealer’s terms. Every step of a car purchase can be negotiated, and that includes your deposit. You’ll want to make sure that the deposit is refundable if the deal falls through.

    Read the terms of your contract carefully. If the paperwork says a deposit is nonrefundable, make sure you have the sales manager change it so that it will be refunded for any reason. If you plan on having the vehicle inspected or might not be able to secure financing, you’ll also want these contingencies outlined in your contract. This way, if you have to back out of the sale for any reason, the dealer can’t keep money it didn’t earn.

    If you’re sure you need to put down that deposit, pay for it with your credit card. This way, you can dispute the charge with your credit card company. Paying with anything else may make it harder for you to get your full deposit back, even if it was 100% refundable.

    Stay safe when issuing deposits to a car dealership. This isn’t the same as a down payment, and your deposit should not be listed as a partial payment. Although you may have to put up a deposit, try to avoid it if you can.

    What are the pros and cons of using a car loan to buy a used car?

    • You don’t need the full amount to buy the car.
    • Loans help you build credit.
    • Compared to leasing a car, taking out a loan helps you build ownership of your car.
    • You can get a great price on a used car by negotiating in a private sale or at a dealership.
    • You have various financing options to consider — both secured and unsecured.
    • Could pay a high monthly payment with high interest rates.
    • Used car financing can be more expensive and restrictive than financing for new cars.
    • You could be buying a car with lots of problems.
    • The age of the used car affects its resale value.

    3 steps to comparing your auto finance options

    Securing the right finance is as important as finding the right car. Some car loan terms extend up to seven years, so it’s quite a commitment. Here’s what to look for when looking for the right financing:

    1. Interest rate. The first thing to consider is your lenders interest rates. Compare your options to find the most competitively priced and packaged loan.
    2. Fees. Lenders can charge a range of fees on used car loans — termination fees, origination fees, loan maintenance fees and more. Review all the extra costs that come with your used car loan.
    3. Flexibility. Can you make additional and lump-sum payments during your loan term? Are you able to repay your loan early without penalty?

    How long will I pay my used car loan?

    The average used car loan is shorter than a loan for a new car. Loan term varies between lenders, but it’s usually between two to seven years for variable rate loans, or one to five years for fixed rate loans. Longer loan terms can make your monthly repayments smaller — but you’ll pay more interest, making your loan more expensive in the long run.

    Can I get a used car loan cheaper than dealership finance?

    Low-interest car finance deals can be tempting, but keep in mind low, ongoing repayments don’t automatically mean a cheaper loan.

    Take a look at the following features of both the loan and the dealership finance offer to find out which one is the better deal:

    • Interest rates. Dealership finance generally has lower interest rates to get you in the door. But if you shop around and find a used car loan with lower rates and reasonable loan terms, it may be the better choice.
    • Down payments. Dealerships financing generally requires a down payment and is usually a couple of thousand dollars.
    • The price of the car. Sometimes dealerships offering good financing promotions can’t give as good a deal on the price of your vehicle — it pays to negotiate the price before securing your loan.
    • Extras. This shouldn’t affect the price of the actual finance amount, but you should consider the value of extras like additional insurance or an extended warranty.

    Bottom line

    Whenever you apply for a used car loan, take the time to read the terms and conditions. It’s important to be aware of all fees and charges, as well as any restrictions on the vehicle or loan.

    A used car can be a reliable option when you’re looking for your next set of wheels — just make sure you get the right used car financing.

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