If you are considering a used Honda vehicle, it’s important to understand that used car financing can differ from financing a new vehicle. Our experts at Heritage Honda Bel Air have a few tips to help.
Set a Budget
Before you start shopping, it’s important to know your budget. Experts recommend that you keep your auto payment and expenses under 20 percent of your take-home pay. With an auto payment calculator, you can quickly get an estimate of your future payment.
Get Preapproved
Getting preapproved for an auto loan is a great way to see if you’d be approved for an auto loan, as well as the rates you could expect. Plus, it typically doesn’t seriously affect your credit.
Limit Your Loan Length
Typically, if lenders are hesitant to extend financing for a used vehicle, it’s because they’re worried about the reliability of a used car. By keeping your loan length short, you can help ease their minds. Shorter loans are typically preferable anyway because you save on interest.
Establish Your Buying Power
By establishing your buying power, you can also help give lenders the peace of mind they crave. This can be done by making a sizable down payment or applying a trade-in to your purchase.
Consider a Certified Pre-Owned Honda
Lenders are typically much more likely to extend a loan for a Honda Certified Pre-Owned (CPO) vehicle when compared to a used vehicle. These vehicles are meticulously inspected and include warranty coverage, so lenders know they will last.
Find Quality Used Car Financing in Fallston, MD
We encourage you to visit us at Heritage Honda Bel Air to chat with our financial experts. We’re happy to discuss your financing options and help you get approved. Stop in to get started today!
