How to Finance A Used Car?

Sprint Auto is the preferred dealer for automotive consumers in Grande Prairie, Clairmont, Sexsmith, Wembley, Sprint River, and Beaverlodge, Alberta. Our convenient location allows for easier browsing of our used vehicle inventory, and we invite you to contact us to schedule a test drive.

Used Cars & Financing

Most customers can't afford to buy a car with cash, which means you'll need to secure funding. In the automotive industry, this is known as financing. The financier is a financial institution that pays the up-front cost of the vehicle. The buyer pays the loan back with interest over the loan term, which can be anywhere from two to seven years. The longer the term of your loan, the lower each payment will be, but because the interest builds up for longer, the more you'll pay overall. Your financier will look at your credit rating, income, and value of the vehicle to create a loan offer. Depending on these factors, you may be offered a different deal in interest rates, your loan amount and length.

Ways to Finance a Used Car

There are two primary ways to finance a used car: a bank or a car dealership. The different focus of these two types of entities means that each has its advantages. The bank doesn't care much about the car itself but about their financial relationship with you. This means that they may offer you a better interest rate, and they may be more open to renegotiation later in the life of a loan. On the other hand, a bank is likely to be stricter with whom they'll offer a loan in the first place. Banks look at borrowers very carefully, and they're more reluctant to make loans on used cars. Also, their approval process takes longer.

Financing a Car at Your Dealership's Finance Centre

A car dealership is primarily motivated to sell cars, which means that they're much more eager to lend you money than the bank is. Typically, the dealership will offer loans to customers with lower credit ratings and income than a bank will. Furthermore, because they want to close the deal, they typically finance the loan faster.

Contact Us For More Information

For more information about financing your used car purchase, contact us at our Finance Centre in Grande Praire, Alberta, to apply for financing securely online for pre-approval.

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