Is it a good idea to get a loan for a used car?

Getting into a safe and reliable car isn’t cheap, even if you take advantage of the low prices at Toyota Direct. When you need to buy a dependable vehicle, is it a good idea to take out a used car loan? Toyota Direct deals with financing questions every day at our used car dealership near you. From information on auto loan rates, to special financing, our team of experts will have you covered. Let’s learn more about the car loans near you available at Toyota Direct!

Is it worth getting a loan for a used car?

Yes, if you aren’t in a position to pay cash at our used car lot in Columbus, Ohio, it’s very worthwhile to get a loan for a used car. Toyota Direct will work hard to source a competitive used car loan rate for your purchase. Our dealership works with a vast network of national and local lending institutions. Unlike a bank, we allow lenders to compete for your business to get you the best possible deal. 

Even if you have the bank balance to pay cash, many customers choose to finance their used cars to keep their savings liquid. Rather than putting out a huge chunk of money all at once, financing a car allows you to pay for the vehicle over time. If you prefer to keep emergency funds handy, a used car loan lets you get into a car without draining your bank account. Our used car dealership near you knows that life is unpredictable. Enjoy the peace of mind of a healthy savings account by financing your next used car.

What credit score should I have to buy a used car?

If you’re applying for a conventional used car loan, Investopedia suggests you’ll need a credit score of 660 or above. Don’t despair if your score doesn’t meet the requirement! Our used car dealership near you offers plenty of special financing options for bad credit customers. For drivers with bad credit, getting approved for a car loan near you can be difficult. Toyota Direct helps customers with damaged credit secure fair auto loan rates. With a few months of timely payments on your used car loan, you’ll be thrilled to watch your credit score improve!

How many years should you finance a used car?

One thing to keep in mind at our used car lot in Columbus, Ohio – the longer the loan, the lower the monthly payment, but the more interest you’ll pay. If you prefer to keep your monthly expenses as low as possible, a longer loan term will result in lower payments. If you’d like to pay as little interest over the loan term as you can, opt for the shortest loan term available.

When should you not get a car loan?

Of course, there are some instances in which you shouldn’t get a car loan. Our used car dealership near you cares more about your financial health than making a sale. If you’re not certain, our financial services team will be happy to review your situation to make a recommendation. In general, there are two instances in which you shouldn’t get a car loan. If you can’t afford the ownership costs of the car, financing the vehicle won’t make much of a difference. Or, if you can’t afford payments with the auto loan rate offered, it’s not a good idea to take out a loan.

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