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Finanacing Your Craigslist Used Car

by craigscars

If you can afford to pay cash for your recently found car and can afford to that is great. Most people however, will need to finance their car purchase. Some things to think about when financing your pre-owned vehicle are listed on this page. If you want to get pre approved for a loan click the following link to they have a program to help finance your purchase Shop Like a Cash Buyer with Apply Today.


Your credit history is critical to saving money at this stage, if you need to borrow money to pay for your new car than your credit report will be used to determine how much your loan will cost. There is a lot of websites that cover credit, debt and finances on the web so; I won’t try to duplicate it all here. The basic thing you need to know is the higher your credit score, the lower your interest rate. If you lower your interest rate you lower your monthly payment or you can get a nicer car for the same payment. You should check your credit reports from the 3 credit bureaus (Experian, Equifax and Transunion) at least once a year and before you embark on a major purchase such as a house or a car. If your credit is less than perfect contact to help straighten things out.

ID theft is also very prevalent out there, be very cautious with whom you give your Social Security number and other critical information. We recently got a phone call from Toyota finance asking if we applied for an account, well we didn’t. Someone had gotten a hold of my wife’s information (who is a lot more cautious than me) and set up a phone account and 2 credit cards in her name. It is a lot of forms, phone calls and internet time to try to straighten it all out and monitor your credit accounts so, be careful.

There are many ways to finance your vehicle purchase. Below are some different institutions that you can borrow money from to purchase your Craigslist car. Most of these institutions offer different types of loans. The most traditional would by a collateral loan using your car as the collateral. Other types of loans you can get are a home equity which is usually a low interest rate and tax deductible or a personal loan which requires a high credit score and is usually a higher interest rate.

Banks-The most traditional way is to contact a bank. A bank is a for profit institution, they make money lending you other people’s money. They also tend to offer a wide range of products and multiple locations. Most banks have convenient ways to apply for loans either online or by phone.

Credit Union-A Credit Union is very similar to a bank except it is a not for profit intuition that is owned by its members. My last 2 car loans were through Credit Unions. One was set up through the dealership where I bought the car and the other I applied for when I purchased my Camry. We belong to a credit union but we also have an account with a major national bank, I just find it easier to deal with the credit union. The rates are usually the same if not better. The biggest complaint I have heard is that there are usually less branches and may have less types of loans to offer.

Online Loans-It doesn’t take long to find a company that offers financing online. This option probably offers the most options and the biggest chance for fraud. They offer loans with competitive rates, loans for people with no credit or bad credit, no down payment loans etc. My thought with this is go with a name you recognize or a friend’s recommendation. Do some research on the company upfront before you give them your information, search the companies name online and check with the Better Business Bureau. Here are links to some companies I recommend Buy a Car Like a Cash Buyer – Get Financing FIRST!, Apply for an Auto Loan Now

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