3 Things You Should Know About Auto Loans in Spartanburg

On the surface, financing used cars in Spartanburg, SC may seem like a straightforward business. Pick a used car in the dealership, pay some down payment, apply for financing the entire amount that you owe, and walk out with the keys. While this is typically what happens in any buy here pay here dealership, the nuances surrounding the steps separate the reputed dealers from the mediocre ones. You need to keep the following 3 points in mind while financing a used car in Spartanburg. Do your research, know the deal, and then walk over to a dealership to buy a car.

1. The interest rate will depend on you, not what the market says

Now, you may have searched for buy here pay here car lots near me and read about their financing deals. You must have found out that the interest rate for bad credit score holders as per the market is anywhere between 18-28%. Given your not-too-bad credit score, you might expect an 18% interest rate but the case might not be so in reality. Interest rates are calculated by taking in a whole lot of factors. Your current debt portfolio, your net income, your credit report, and your type of existing loans – all these may hike the interest rate payable and you should manage your expectations accordingly.

2. Taxes and registration fees do not come under auto loans in Spartanburg

When you buy a used car, you will have to pay taxes, title, and registration fees. You will also have to buy insurance before you can drive the vehicle out of the lot. You incur these expenses on top of the used car’s price and auto loans do not cover these added payments. In most dealerships, you might have to pay the extras upfront before your loan approval can go through. If you have not factored in these payments in your budget, you will have to reduce your down payment to balance taxes and registration fees and apply for a higher loan. Reputed dealerships will let you know this deal before you sign any agreement papers.

3. Long credit spans do not ultimately help you

As used cars in Spartanburg, SC cost way less than their newer counterparts, buyers tend to go overboard with their budget. And the way they fit the overboard amount into their monthly expenses is by extending their auto loan span and reducing the premium payable. Lenders also fuel this trend as they stand to benefit in the end. The more you draw out your loan, the more interest you pay, the more money you spend behind buying a used car. So, overlook those flashy advertisements that promise you financing with low monthly premiums. Pick a top name like Family Auto of Spartanburg and finance your used car with 3-year auto loans that benefit you in the long run.