Finding Financing For A

Pre-Owned Vehicle

OverviewPre-owned vehicles give auto consumers access to higher-end vehicles at lower prices. For thousands of dollars less than they’d pay for a new car, consumers can purchase gently used vehicles that will offer years of reliable service. Going pre-owned can allow auto consumers to buy vehicles that are roomier and have more amenities than brand new entry-level vehicles. Many financing options are available for pre-owned vehicles.

Pre-Owned Vehicles Offer Value

• More than 41 million pre-owned vehicles were sold in the U.S. last year.

• The average used car costs about $14,375.

• The average new car or light truck costs about $30,000.

• Longevity for vehicles has increased in recent years. Many modern vehicles can last for 250,000 miles or more with routine maintenance.

Financing Options AboundEven though pre-owned vehicles are much cheaper than brand new cars, consumers will still need financing. Auto consumers have several options, including:• Bank financing• Credit union financing• Finance companies• Dealer financing

Bank FinancingIf you have an existing relationship with a bank, chances are that you’ll be able to get financing for a vehicle purchase. Before preparing to visit car dealerships, sit down with a representative of your bank and discuss how much they will be willing to lend and at what rate. Banks often offer favorable deals for their customers and for individuals with good credit.

Credit UnionsCredit unions are financial institutions that resemble banks. Where they differ is that credit unions are non-profits whose stated goal is lending money to their members at low rates. By joining a credit union, you may gain the opportunity to borrow at a lower rate than you could from another lender.

Finance CompaniesFinance companies offer lending services to their customers. It’s worthwhile to check the rates these companies offer against those of other lenders, as finance company rates are often higher. However, some finance companies specialize in offering loans to credit-stressed individuals, making them a good option if other lenders won’t help.

Automobile dealerships can often help clients by financing car purchases. Dealers will usually sign a financing agreement with you, then turn that agreement over to a bank or other financial institution. Dealer financing may be an attractive option because car dealerships often offer special promotions on financing a vehicle.

Dealer Financing

Before Purchasing A Car

• Improve your credit by paying bills on time and clearing old debts.

• Save money for a down payment.• Shop around, visiting several

lenders to find the best deal.• Set a budget for your pre-owned

vehicle purchase.

Desert Sun Auto Group sells quality new and pre-owned vehicles at dealerships throughout New Mexico. We sell new Chevrolet, Buick, GMC, Cadillac, Chrysler, Dodge, Jeep, RAM, and Toyota vehicles and pre-owned vehicles of nearly all varieties. We pride ourselves on selection and customer service. To learn more, visit http://www.desertsunmotors.com or call 575-437-7530.

About Desert Sun Auto Group