At Bernard’s Northtown Chrysler Dodge Jeep® RAM, we know that when you’re ready to find a vehicle, a quality used car can be the best financial choice. A brand-new car can ease your mind in terms of reliability, but used cars can just make the most sense.

Once you’ve selected what you need, the question is: how do you pay for it?

Can You Finance Used Cars?

Yes! You just need to consider what kind of financing is best for you.

The two main types of financing for a used car are direct lending and dealership financing. Here is a breakdown of the pros and cons of each of them.

Direct Lending

Direct lending is essentially a car loan. You, as the buyer, would borrow the money from a bank, credit union, or finance company. This comes with an interest rate which you agree to pay back over a set period of time.

Direct lending has its advantages. For instance, you can get pre-approved credit terms, locking down the maximum amount you can borrow, annual percentage rate (APR) and length of the loan (in number of months). You can use this information when negotiating with the dealer.

When you’re pre-approved, you can go to several different dealerships and negotiate the end-price a vehicle you might be interested in.

Dealership Financing

Dealership financing means the dealership will be financing the purchase. You will enter a contract with the dealership to buy the car via an agreed-upon payment plan.

The dealer will usually then sell this contract to a bank, credit union, or finance company. You would deal with payments through this third party.

Financing through the dealership can mean being able to choose from a variety of different options, and they are bound to have special offers and deals. These can depend on your situation and credit rating, so be thorough when researching the best option for you.

The age, condition, and even the make and model of the quality pre-owned Chrysler, Dodge, Jeep, or RAM you’ve decided on can affect the terms of your financing, no matter which route you take. Be sure to do your research. Make sure you understand the rates and the deal you’re making before you sign anything.

If you have any questions about quality pre-owned financing, contact Bernard’s Northtown Chrysler Dodge Jeep RAM today.