Used Car Financing

If you are planning on buying a car, you are probably planning on taking out a loan. Even used cars are typically expensive enough that you will need a loan to pay them off. But don't let that deter you from buying a used car in Waukesha! Used car loans are a reliable way of building your credit. And at Ewald Chevy, a used car dealership near Waukesha, we work hard to get you the best interest rates for quality used cars. Here are some answers to common questions about used car financing. 

How does a car loan work?

Car loans are pretty much the same as other types of loans. When buying a used car in Waukesha, the financing process is quite simple. Your loan comprises three things: the loan amount, the annual percentage rate, and the loan term. Let's break down these three things.

• Loan amount: This is the principal amount you are paying off. If you are trading in, it is either the price of the car or the difference between the price and your old car. 

• Annual percentage rate: Also called APR, this is the interest rate on your loan. The interest rate can be different depending on your credit score, dealer promotions, and other factors.

• Loan term: This is how long you will take to pay the car off. Loan terms can differ significantly depending on your situation and the dealer's offer. At Ewald Chevy, we offer flexible loan terms so you can easily afford your Waukesha used car.

• One big difference is that a car is a quickly depreciating asset so you might fall into negative equity. Negative equity means that you owe more on your car than it is worth. It isn't ideal, but it won't hurt you unless you want to trade in your Waukesha used car.

• You also need to be aware about down payments. You might be tempted to put down as little as possible, but this will raise your monthly payments and overall cost. It's best to put down a larger down payment right away.

What do you need to finance a car?

You want to be prepared before you walk into our dealership to finance your car. If you know what you can afford and what is needed, the process will go much more smoothly. We at Ewald Chevy will help you get your Waukesha used car bought no matter what, but it's less stressful if you know what is expected. Here's what you'll need to do and have with you:

• Complete a loan application. Your application may be done online or at the dealership. It will ask you for your annual income, SSN, DOB, occupation, other debt, etc. It is pretty straightforward, but you should know your income and debt situation before you begin.

• Provide proof of income. The lender wants to know that you will have the means to pay the monthly payments. You can use pay stubs or bank statements. 

• Have good credit history. Lenders will pull your credit when you apply to finance a car. If you don't have credit, skip down a few questions. We talk about how you can still finance a car with no credit.

• Provide proof of residence and identity. Well, this is straightforward. The dealer needs to know that you are who you say you are and that you live in the state. Your car has to be registered in the state where you live, which is important.

How to finance a used car

If you choose to finance a used car, don't worry! It is almost the same as financing a new car. 

• Know your credit score beforehand. This way, you will know what you can qualify for. If your credit isn't quite where you want it to be, you could also put off financing for a few months, especially if you're right between two credit categories!

• Finance through a dealer you trust. This step is easy if you finance a used car near Waukesha because you can finance through Ewald Chevy. We have proved to our customers that we can be trusted and we have the reviews to show for it!

• Fill out the used car loan application. This part we discussed above. It's pretty simple, with information like your income, your expenses, how much you want to borrow, etc.

• Decide which financing option is best for you. You may want a large monthly payment to have a shorter term. Shorter terms will save you money in the long run. But it may not be financially feasible to have large monthly payments. That's okay too, just choose a different term length. You can also choose how large of a down payment you want to pay.

What is a good interest rate on a used car?

One thing to know about financing a used car in Waukesha: interest rates are slightly higher than on new cars. This is true everywhere. It's just how it is, but you can still get good interest rates on used cars for sale near you. According to NerdWallet, the average interest rate for used cars is around 8%. But depending on your credit or dealer promotions, you could get anywhere from 3% to 20%. If you're looking for a used car in Waukesha, remember to check out Ewald Chevy's website to see if we're running any promotions!

Can you get a car loan with no credit?

Yes, it is definitely possible to get a car loan with no credit. It may be a bit more difficult, but Ewald Chevy will work hard to help you afford your Waukesha used car. It will help if you have a responsible co-signer and proof of a steady income. Ewald Chevy works with all kinds of lenders, including lenders that specialize in customers with no credit. 

In the end, financing used cars isn't that complicated, especially when you work with Ewald Chevy! We love our local customers, and we want you to get the best out of your used cars in Waukesha. So come on down and help us find the suitable financing options for you!