Although the world was hit by the most serious crisis for the last 90 years, the last surveys show that the number of people who think about replacing their car is increasing. However, there are two very important facts which we need to add. The first one is that most of those people do not have the money to do that but they depend on the auto financing which has become quite popular the recent years. But that is not all- we should also say that most of the people do not even dream about getting a new vehicle! What they dream of is just replacing their old car, van or whatever with one which looks a little bit better.
Of course, there is a reason for all those facts which were mentioned. For instance, the reason why people do not want to purchase a brand new car is that they are extremely expensive, usually twice more expensive than the used vehicles. And you probably know that most of the people have bad credits which just ruin all their chances of getting auto financing for a new vehicle. But as people say: “crisis is crisis and we should play according to its rules!”
Once you have made the decision to apply for used auto financing, you should come prepared for facing many problems, some of which could even make you go out of control! That is why you are going to be given information about the main steps which you need to take in order to get auto financing for a second-hand car.
Well, the first thing which you should do is, of course, applying for used auto financing. Then the bank, auto finance company or the dealer will make the decision whether you will be financed or not! Unfortunately, there is nothing which you could do until all that is happening- you can only hope that you will not be in the group of 40% which are denied!
If approved, you will be given an individual contract which is prepared according to your personal incomes, expenses and general finance condition. That kind of contracts are usually very complex, contain many clauses and are non-understandable to most of the clients. But there are some important clauses which you need to pay serious attention to. The first one is the clause where the interest is mentioned. I would not advise you to sign up if the interest is more than 8% (when the source of finance is auto finance company) and more than 13% (when the source of finance is a bank). You should also draw attention to the rate of monthly installments and the refunding period’s duration!