How to Get a 60 Month Used Car Loan

January 27, 2012

A 60 month used car loan is a good option for those wanting to purchase a vehicle, have lower auto loan rates or decent monthly payments. Those wanting to refinance a current car loan can benefit from 60 month refinance rates. 60 month car loans are widely available and can be attained easily.

Getting a 60 Month Car Loan

  1. Know your credit score - Bad credit history may make you ineligible for an auto loan so make sure you know what your credit score is before going to a dealership and getting excited about a used car you like. Many of the good introductory rates advertised at dealerships are dependent upon your credit history: a 0% interest rate could very easily turn into 20% if the circumstances are just right.
  2. Research auto loan rates - A dealership isn't the only place you can get a used car loan. Dealerships usually work with a financing company to help a customer make a transaction on the spot. Other locations, however, like banks, credit unions and other financing institutions usually are able to offer better rates on car loans to their customers than dealerships.
  3. Figure out how much car you can afford - If a monthly used car loan payment is going to take away half of your paycheck, that car is too expensive. Financial advisors suggest that half of your monthly paycheck go towards your housing costs (rent or mortgage, plus insurance) and car payment combined. Otherwise you may feel overwhelmed when money is tight.
  4. Think twice about the car you want - A 60 month loan is essentially a 5 year loan. Determine if the used car you want is going to last that long without needing a lot of maintenance. Find out information about the warranty the car may still have, and ask when it expires. It's wise to also find out the estimated resale value of a car if you plan to sell it in the future. You'll have to keep in mind that you aren't just paying the cost advertised on the windshield: you'll be paying that price in addition to the cost of interest over the span of 60 months.
  5. Make the call - If you've found the perfect car and a payment that fits within your budget, know how much you can afford to spend on a car and are ready to go car-shopping, or have decided to refinance an existing car loan, contact the financing institution you've chosen and let them know your intentions of obtaining a 60 month car loan.
  6. Provide your information - All of the typical information will need to be given to the company giving you a loan: name, contact information, the name of anyone co-owning the car, your social security number, birthday, financial situation and employment information. Other personal information may be requested depending on the establishment.
  7. You're set. After all of the paperwork is done, you'll be ready to get behind the wheel of your newly-purchased used car.

If money is tight and you need a new car, it can be possible with the help of a 60 month used car loan.


Related Questions and Answers

Is the Interest Rate on a Car Loan Lower the Longer the Loan is?

The interest rate on a car loan is determined at the time the loan is taken. The financial institution calculates the interest rate based on several factors. Including your credit history, creditworthiness and payment history. The life of the loan does not affect the interest rate. The length of the loan does determine the monthly payment. For example, a $300 loan at 60 months could be a $260 loan at 72 months. The interest rate, however, remains the same no matter how long the loan is. A bank may offer to lengthen your loan term to help make the car loan affordable for you.

How Long Can You Defer a Car Loan For?

A car loan is deferred after considering several factors that must be checked prior to settlement on the loan. The usual loan deferments are a minimum of 45 days to a maximum of 90 days. Often, manufacturers run special incentive programs allowing you to delay or defer your first payment for an extra three to six months. These programs are often used in conjunction with 0 percent financing. These incentives are used to stimulate car sales. Dealerships are informed weekly of special incentive programs, as well as at the start of each month, and on any other special loan programs. It pays to check with the dealership business office if you are thinking of deferring your car loan payment.

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