5 Tips for Financing a Used Car

Finance Tips - Rocky's Auto Credit

You’re in the market for a new-to-you vehicle, and you’re considering all your options. You’ll probably discover that financing a used car is different than getting a loan on a new one. Before you head to the dealership, check out these five tips for financing a used car.

1. Know your Credit Score

Banks and other lending institutions use your credit score to determine your interest rate, among other things. The good news is buying a car doesn’t require perfect credit. However, those attractive ads for low-interest financing are geared toward borrowers with excellent credit, which generally means a minimum FICO credit score of 700. If you have little, no, or poor credit, you’re likely to pay more interest over the life of your loan.

2. Get a Few Quotes

Often the best choice for financing is through your dealership. It’s staffed with loan experts armed with long-standing partnerships with banks and might even offer incentives from the lending companies it works with regularly. It never hurts to have a comparison quote, though.

In today’s high-tech world, it’s easy to apply for a used car loan online. Shopping around for financing is just as important as test-driving more than one car. Compare not only the monthly payment but the term of the loan as well as the interest rate before you sign on the dotted line.

3. Keep the Term Short

The longer your loan, the more you’re going to pay in interest. This idea is an easy concept to grasp, but when you’re looking at those attractive monthly payments on a seven-year payment plan, it’s hard to resist. Be realistic, and opt for saving money over convenience. When you pay off your loan faster, you end up owning your car sooner — and it’s worth the price you paid for it.

4. Put Down a Large Payment

Another way to save money on financing is to put as much money down as you can reasonably afford. Some experts recommend a 20% down payment when purchasing a vehicle to compensate for depreciation.

The key thing to remember is the more money you put down, the better. Your loan will be smaller and so will your monthly obligations. A significant down payment might also give your lender a reason to lower your interest rate. Take time to save up, especially if your credit is less than stellar.

5. Pay Fees in Cash

When you buy a used car, you usually have to pay a variety of other costs, as well. From dealership fees to sales tax, these added expenses are often rolled into the loan. If possible, consider paying these fees in cash instead of financing them. Why pay interest on sales tax? It simply doesn’t make sense from a fiscally responsible standpoint.

Use these five tips for financing a used car next time you head to the lot. Armed with this knowledge, your car-buying experience will be fun and rewarding.

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Top Reasons to Buy a Used Car from Rocky’s Auto Credit

Why Buy a Used Car - Rocky's Auto CreditThe time has come to buy a new car. The old hunk of junk sitting in your driveway needs to go, and in its place will sit something new and improved. But when it comes to actually buying a new car, the decision to purchase a brand-new or used vehicle can be daunting. As it turns out, much like buying a new car, there are many advantages to buying something used. Here are just some reasons why buying used is the way to go.

  1. Cheaper Price

It’s the most obvious reason to buy a used car, but it’s also the number one reason. By buying a vehicle two or three years older than the current model year, you’ll be saving plenty of cash. In some cases, a used car can be as much as half the price of its newer iteration. So if you plan to visit a car lot anytime soon such as Rocky’s Auto Credit, make sure to check out the used car section and compare their prices to some of the newer vehicles on display. Continue reading

Best Budget-Friendly SUV Models

Best SUV's for your Budget | Used Cars in Glendale, AZ | Rocky's Auto CreditMany families need the space and versatility of an SUV, but most new models are expensive. Fortunately, there are lots of comfortable, reliable, used SUVs available for thousands of dollars less than a new model. The most inexpensive SUVs are compact, but they can still have most of the features of a larger model. A less costly used vehicle should help you save money on your insurance premiums as well. Here are some of the best budget-friendly SUV models.


The 2012 Chevrolet Equinox

The five-seat Equinox crossover is available with a 2.4-liter four-cylinder engine or a 3-liter V6. Both have a six-speed automatic transmission, and you can find front-wheel drive or all-wheel drive versions. The optional MyLink entertainment system lets you use services like Pandora internet radio when you connect a compatible smartphone. Continue reading

The Dodge Avenger Through the Years

Dodge Avenger | Car Dealership in Mesa, AZ | Rocky's Auto CreditThe Dodge Avenger was originally released in 1995 as a replacement for the Dodge Daytona. The earlier models were basic level vehicles with limited features built to serve the Daytona enthusiasts. This collaboration between Chrysler and Mitsubishi introduced the first vehicle of the Diamond Star Motors line. Since the initial rollout of the Dodge Avenger, the vehicle has taken on many changes and features, catering to a variety of customers.

The Early Dodge Avenger

The earlier models of the Dodge Avenger were available in the coupe version only with the option between a V6 and a 4-cylinder. By the year 1999, a sportier 2-door version was available. This included a spoiler and higher cast aluminum wheels. One of the biggest selling points of the earlier Avenger models was the high fuel economy rating of over 30 mpg. Another prominent early selling feature was the fully independent wishbone suspension. Continue reading

Reasons You May be Turned Down for an Auto Loan

Reasons You May Be Turned Down for an Auto Loan | Rocky's Auto CreditYour credit score is an important factor in getting a car. It can be the determining factor between getting the car you want and getting the car you have to settle for. Cars are expensive, which is why most dealers offer some form of financing. There are even companies that will loan you the money to pay for your new vehicle.

While many of these places promise that you won’t be turned down for a loan, the truth is that there is a real chance that many might turn you down under the right conditions, no matter how positive the institution is. You can do something about them, but only if you know what’s going on. Here are reasons you may be turned down for an auto loan.

A Failing Credit History

The most common reason for being turned down for an auto loan is your credit score. If your credit score is very low, below 400, you are likely to be denied a loan on the basis that you have bad credit. Giving you credit is an investment for a company; companies will not invest in you if they think that you cannot meet your obligations. Continue reading

3 Ways to Increase Your Credit Score

3 Ways to Improve your Credit | Auto Loans in Glendale, AZ | Rocky's Auto CreditYour credit score is important if you want to be able to make any large purchases or open credit lines. Most financial institutions use your credit score to decide whether to offer you credit. Therefore, it is important to have a good credit score, even if you are not sure you are going to use it.

If your credit score is already in not great shape, do something to fix it. Here are three ways to increase your credit score.

You Can Improve Your Credit Score

The most important thing to remember about your credit score is that it is fluid and constantly changing. If you have a bad credit score, don’t give up on fixing it. It is a temporary look at your credit history and a few simple actions can easily change it. Essentially, you are going to change your credit score through positive actions. Continue reading

4 Advantages to Buying a Used Car

Advantages to Buying a Used Car | Rocky's Auto CreditWhen it comes to choosing new vehicles, drivers often find it difficult to choose between buying a brand-new car or a used car. One of the main worries about used cars is the possibility of buying a nice vehicle that turns out to be not so nice. But with some good research, you can easily avoid the bad apples and take advantage of the perks of buying a used car, four of which you’ll find out about here.

Avoid Most Depreciation

One of the most frustrating aspects of buying a new car is when owners find out the car’s value depreciates by anything between 20 to 40 percent within the first two years of ownership. Furthermore, it’s not uncommon for a car to depreciate by 40 percent in the first year. When you buy a used vehicle, you often avoid that early big depreciation after purchase, compared to buying a shiny new car straight from the dealership. The end result is that you can typically drive a used car for however long you need it and sell it yourself at a much lower loss than the original driver took when he or she sold it to you.  Continue reading

Financing 101

Finance 101 | Auto Loan Phoenix, AZ | Rocky's Auto CreditFinancing is a popular method to pay for a motor vehicle, but it’s not wise to dive headfirst into financing a motor vehicle without learning some key points about it. Here’s some of the most important information you need to understand before financing so you can approach it with the requisite knowledge.

Cost of Financing

Financing the purchase of a new or used motor vehicle costs more than the actual value of the vehicle.  The extra cost represents monthly interest paid to the lender. Other loan costs such as administration fees further increase the overall price you pay over the term of the loan. On the positive side, you don’t need to part with a hefty chunk of money to get a new or used car when you opt for the financing option.  Continue reading