The Best Used Car Financing Tricks in Topeka

July 29th, 2019 by

Used cars aren’t just for teenagers anymore, and they certainly aren’t the clunkers that movies and popular media make them out to be.

They are increasingly becoming one of the most popular car-buying options in the United States. There are many reasons behind the increase in used car buying. Between low national minimum wages and high costs of living, it often makes sense to buy a car used. For some, buying new comes with the worry of large monthly payments. One of the biggest reasons that people are buying used, however, is because of the increase in the costs of new cars. A 2017 New York Times article pointed out that the price of a new vehicle jumped 13% between 2011 and 2015. That cost only continues to rise, making it hard for most people to enjoy the luxuries of a new car.

For those with credit issues, new cars might seem entirely out of bounds. Most new cars cost upwards of $35,000, and even some used cars can cost much more than most are willing to spend. However, it’s often no picnic trying to finance a used car through your bank or credit agency. This causes many who need a reliable used car to spend thousands on a junker they bought secondhand from a private seller. For those of you in Topeka, Kansas, there are more reliable options for financing and purchasing a used car. Auto Now of Topeka is one of the many options. Here are some of our tricks for finding the best used car financing available to you.

Get Preapproved to Avoid Any Issues Down the Line

Preapproval for a traditional loan looks like this: You’ll fill out an application for financing. The application will likely ask you about personal financial information, like how much you make each month, a quick peek at your credit scores, and perhaps a look into your credit history. Many financial health gurus recommend starting with a bank or financial institution you know, like your bank. There are often insider rates and deals that you can sometimes leverage using your own bank.

However, if your bank uses credit scores and credit history to determine your lending amount, you might run into issues if you have previous credit issues. If this is the case, getting preapproved at a buy here pay here dealership like Auto Now of Topeka can help you avoid running into problems with credit applications and help you get the used car financing options you need quickly.

Ask Relatives and Friends For a Loan

Of course, used car buying comes with some upfront financial commitment regardless of your financing options. Whether you end up making a swift first-month payment or a down payment, you’ll need to have some money to make a partial payment. If you have credit and/or income issues but need a car, this might be a good instance in which to ask a relative or a friend for a loan. They often can help you get ahold of the used car financing options you need without having to go through the pain of applying to multiple lenders and getting denied.

Each credit inquiry made on your credit history factors against your credit score, so even those trying to make a positive impact on their credit score by applying for other credit accounts might face harsh consequences for multiple applications. Having help from relatives to make a down payment on a car from a buy here pay here dealership, which provide financing options to you regardless of your credit history.

Shop Around for a Good Interest Rate

Many first-time car funding seekers will just hop on whatever deal they get first and ride away with it. That’s not the best way to go about car shopping, even if you are worried about your credit history and ability to get financing. Get preapproved for loans — this will involve you filling out an application and waiting to hear about approval. Once you are preapproved, you will see what types of interest rates you are looking at, and you’ll be able to pick from the best rate. This will save you money over time.

Most buy here pay here dealerships offer preapprovals for financing, like Auto Now of Topeka. Read on to see how the financing process works at buy here pay here dealerships.

Get Started With a Buy Here Pay Here Car in Topeka at Auto Now

Buy here pay here financing is one of the best ways to get funding quickly, regardless of your credit history. First, you start with an application, like the one found here. You’ll be asked about your monthly take-home income, as well as other financial obligations you might have. After this, you’ll be approved for a certain amount, and the dealership will walk you through the types of cars they have available on the lot within that financing range.

Work on Your Credit

It might seem that working on your credit is easier said than done, but there are many easy ways that you can work on your credit, and not all of them involve you foregoing a car purchase until your credit score improves. Credit score improvement does take time, but it’s possible to lower your score in a manner of a few months and make yourself available to better future lending options.

  • Start making regular monthly payments to all your open accounts again.
  • Consider paying more on each debt account, if you can (this looks good in the eyes of credit agencies).
  • Work toward paying off some of your credit accounts. Start with the lowest and work your way up. Financial experts have said this is the best way to stay motivated toward paying off your debts.
  • Consider working with a buy here pay here car dealership. Your on-time payments toward your car will improve your credit score, and you won’t have to worry about being denied funding based on your credit score.

We have more financing tricks up our sleeves at Auto Now in Topeka; you’ll just have to stop by our dealership to learn more about them. Call us at (785) 266-6300 today to make an appointment, or click here to get preapproved for financing.