Buying a used car is an alternative for those who need or want to own a car but can not afford the costs of a zero kilometer vehicle. The purchase of a used car can be made in cash or financed. If you choose the second option, it is always important to research the type of financing best suited to your possibilities and to simulation before buying to ensure that you are making the best deal. Check-out:
What are the types of financing for used cars?
The financing of used cars can be done through Direct Consumer Credit (CDC) or leasing. In the first option, the financing is through a bank, which, through a loan, finances the value of the vehicle to the consumer, who pays the installments directly to the financial institution. In the second type of financing, the negotiation is carried out with a leasing company, which rents the car to the consumer and offers him the option to buy the vehicle.
How to finance used cars?
Consumers who choose to finance their used vehicle through the CDC should contact the bank where they currently have a checking account or another financial institution to negotiate the terms of the financing. If you have a pre-approved limit for vehicle financing, you can start the process through internet banking. In this type of financing, the amounts financed, the amount of installments and the interest rates charged vary from customer to customer and from bank to bank. Whoever chooses to finance the used car by means of leasing pays the rent of the vehicle, which remains registered in the name of the leasing company until the end of the payment of the installments. Interest rates, like the CDC, are fixed.
Before buying your used car, it is important to do the simulation to ensure that the fees are fair, that the installments are within your means and that you are making the best deal. To make a simulation, simply access the internet and go to websites of banks and companies that offer this type of service. Here are some of them:
The financing of used cars is an alternative for those who want to buy a vehicle without unbalancing the checking account. However, before you close deal, analyze your finances and make sure you are prepared to shoulder the installments during the funding period so you do not wind up up front. Still have questions about used car finance? Leave in the comments!