Used Car Financing Questions

Thinking about making your next car a used car? That’s great! Now all you have to do is think about how you’re going to pay for it. On this page, we at New Holland Chrysler Dodge Jeep Ram answer all the questions you might have about financing your next used car. Shoppers in New Holland, Lancaster, and Reading should read ahead to learn more!

How Does Mileage Affect a Used Car’s Price?

The number of miles on a used car is one of the major factors in pricing the vehicle. Typically, the more miles on a vehicle, the lower the price is. This is because more miles almost always means that the vehicle has less functional years ahead of it. However, this isn’t always the case.

How Much Down Payment Does a Used Car Require?

It’s recommended that you put at least 20% of the vehicle’s price down as a down payment when you’re financing a used car. If you decide to lease the vehicle, however, you should try to put down as little as possible.

Can You Lease a Used Car?

Yes, and no. Only certain car manufacturers allow for their used models to be leased. As of 2015, the following automakers allowed leasing for their used models: Acura, Audi, BMW, Chrysler, Dodge, Ferrari, Fiat, Honda, Hyundai, Infiniti, Jeep, Kia, Lexus, Lincoln, Mazda, Mercedes-Benz, Mini, Mitsubishi, Nissan, Porsche, Ram, SRT, Toyota, Volkswagen, and Volvo.

Can You Buy a Used Car with No Credit?

Yes, you can. However, it’s likely that your rates will be higher. Lenders use credit scores to gauge the rates that they have to offer. Without a credit score, you’ll probably have to pay a bit more for a used car. You’ll still be able to buy the car nonetheless.

What’s a Good APR on a Used Car?

The APR of a vehicle is the annual percentage rate that you pay in interest on your car loan. A good APR is anything between 5% and 10%. If you have a bad credit score, though, you’ll see APRs up to 25% or 30%.

What Documents Do You Need a Bring to Finance a Used Car?

When you go to finance your next used car, there’s several different documents you can’t forget to bring with you. To finance a used car, you’ll need:

• Proof of identity, like a driver’s license, passport, or other government-issued I.D.
• Proof of income such as several paystubs and tax returns
• Credit history like an official document with your credit or FICO score on it
• Proof of residence such as a utility bill, credit card statement, or homeowner’s/renter’s insurance policy
• Information of the vehicle you’re trying to finance like the VIN number and price
• Proof of insurance like an auto insurance policy
• Method of payment

Still Have Used Car Financing Questions?

We at New Holland Chrysler Dodge Jeep Ram are thrilled that you stopped by today to learn more about used car financing. If you still have questions, we’re happy to offer further assistance. Shoppers in New Holland, Lancaster, and Reading should give us a call today to learn more about used car financing!