Pre-owned vehicles are a great option if you're looking to upgrade. While getting a brand-new car can be enticing, there are major benefits when purchasing one that's had a previous owner. There are many models with low mileage that are only a few years old, which can save a lot of money and still provide a modern style and all the bells and whistles. While used cars are more cost-effective, an auto loan might still be necessary. Financing can spread the expense out over time and alleviate having to spend a large amount of your savings upfront. Here's a look at how to approach a loan.

What to Do Before Getting a Pre-owned Car Loan

1. Set a Clear Budget

One important aspect of getting an auto loan for a vehicle is figuring out how much you're able to pay on a monthly basis. Some aspects to consider are your other expenses and savings, which will show how equipped you are to handle payments if your income should change unexpectedly. By going in with a defined budget, you'll reduce the chances of having an undue burden in the future.

2. Avoid Long Loan Terms

The average loan length for a pre-owned vehicle is 65 months. The interest rate will determine how much extra you'll owe on top of the principal balance over time. Longer-term loans will have lower monthly bills but keep interest accruing for a longer amount of time, resulting in a larger total by the time the vehicle is paid off. 

You'll also be taking on a bill that persists for longer, which may mean less flexibility in the future if plans or finances change. By minimizing the term length, hundreds of dollars can be saved.

3. Make a Down Payment

One way to reduce the total loan amount is by putting money down on the vehicle initially. The more you're able to pay, the lower the loan amount will be. 

This also translates to lower monthly payments and increases your chances of being able to get a term that's shorter. If your savings are healthy enough to make an upfront payment of 20% or more, the savings can be significant over the life of the loan.

4. Shop Around

Fees, interest rates, and terms can make a difference to the total amount you end up paying for a used car. What may seem insubstantial initially can add up to hundreds or even thousands of dollars. Not every lender will offer the same agreement, so get quotes from multiple lenders to choose a financing option that not only works for you but also minimizes the total cost. 

If you're looking for the perfect used car, turn to ProCars in Marietta, GA. This dealership has expertise in helping customers find the vehicles they want and need with terms that work for their budgets. Whether your heart is set on a convertible, SUV, or sedan, they have the inventory to impress. Call (404) 480-4448 to talk about your needs and visit the website to learn more about financing.