4-Step Guide to Getting a Used Car Loan for Single Income Earners
Buying a brand new car can be financially draining for many single income earners. This, coupled with the rising inflation rates, has made affordability difficult for many people. The best alternative in such cases is purchasing a second-hand car. However, paying a one-time lump sum amount can be heavy on your pocket as many sole earners also provide for their family. It will be relieving to know that there are many entities willing to offer you a used car loan. Thanks to the availability of a second hand car loan, it’s become possible for many individuals to own a vehicle. Owning a car will make mobility easier and help you save a lot of time otherwise spent waiting at the bus-stop.
There are a plethora of options available in the market with regards to used car loans. Before you apply for a pre-owned car loan, you may be required to gather a bit of information, which can be a daunting task. Here are four steps you can follow, which will make things easier for you:
Step 1: Check Your Credit Score
This is the first and foremost factor that your lender will take into account before granting your loan. Generally speaking, a credit score above 622 is considered to be good, and the higher the better. If your credit score is the below 622, then there is a reason to be worried. However, this doesn’t necessarily imply disapproval as there are various options available.
Step 2: Organise Your Finances
Some factors that may reflect badly on your used car loan application are unpaid bills, missed or untimely payments, credit defaults, and bankruptcy. This could lead to your application getting rejected. It is recommended to clear these red flags and then apply for a loan.
Step 3: Present Your Case Strongly
Make sure you focus on your financial strengths while presenting your case to the institution. Depending on the organisation, you may be required to provide your job history and residential history. Prepare well and have all your documentation in place. You might never know the kind of offer you will stumble upon.
Step 4: Be Flexible in Your Choice of Vehicle
It’s a known fact that different used cars will vary with regards to cost. Being flexible doesn’t imply compromising on quality. It means keeping your options open so that you don’t overlook the perfect deal.
The process to apply for used car finance is really simple and involves only 4 steps. The first step is filling out an easy online application followed by a visit to the dealership. The next step involves submitting the documents required for used car loan, i.e. photo identity card, banking information, and address proof. To check your used car loan eligibility, you will need to make sure you’re at least 21 years old, have a year of work experience under your belt, and are looking to purchase a car that is less than 10 years old. Another important factor that needs to be taken into account is the used car loan interest rate.