Dealer Financing
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Dealer Financing
Used auto financing (as well as new car financing) is what auto dealers refer to as their "backend" business. Many dealers make the lion's share of their profits from financing deals they cut with lenders. With these deals, the higher the interest rate you pay on your loan, the more money the dealer makes.
The interest rate you are offered on your loan depends on the market rates and your personal credit rating. Before you even begin looking at cars, it's a good idea to get a copy of your credit report. Check it for errors. If your credit rating is less than perfect, see if you can pay off a credit card or two before you apply for your auto loan. And keep an eye on the going rates.
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| Heidi Splete |
