One of the many good thing about purchasing a used car is the many available financing options. A few of the available options include dealership financing, manufacturer’s financing (for certified pre-owned cars), local bank financing and credit union financing. Of course, there are plenty more options available, as well. To get financed though, it takes a little preparation beforehand.
Start by getting all personal finances in order. If there are any debts that can be easily paid off, go ahead and pay off those debts. If there are any late payments, go ahead and get those accounts current first before seeking out financing. Once these things are in order, it is then safe to proceed with the search for financing.
The next thing to do is to look around for promotions. With so many financing options, the lenders have to get creative in order to attraction new borrowers. This could include no down payment financing, interest free financing for an introductory period and more. A buyer just needs to take the time to sort through all of the different types of promotions that may be available in order to find the one with the most value.
The most popular option today is no down payment financing. All this means is a lender does not require that the borrower put down any money in order to get approved for the loan. A lot of people in Hawaii are cash strapped, so this gives them a nice alternative. They can afford the monthly payments but just do not have the means to come up with several thousands dollars to put down.
The Pros and Cons of No Money Down
There are some drawbacks to financing with no money down. For one thing, the monthly payments will be higher than they would be if money was put down. Also, the interest rates are typically higher for loans with no money down. This too will add to the amount that has to be paid each month. The big positive, of course is not having to come up with the thousands of dollars up front. The other downside is a borrower may have to have a cosigner, especially if he or she does not have an exceptional credit score.
TCA Auto is a dealership for pre-owned vehicles in Hawaii. The dealership has over eighteen years of experience selling used cars and offers no down payment financing.
