Not only a new car, you can also buy a used car on credit. Most people consider that the price of new cars will be declined in the future, so they choose to buy a used car instead as long as the buying and the selling prices of the used car is stable. With this opportunity in the market, selling used cars can be a lucrative business to run. Many of used car dealers make special offers to invite more people to buy a used car, especially the special offers for those who buy the used car on credit.
To buy a used car on credit, you need a vehicle leasing company as your financial institution where you are going to make payments. Here are 7 tips you must know before deciding to buy a used car on credit through a vehicle leasing company.
Decide the Car that You Need
Start from what type of car that you need then measure your financial ability to make sure that you can pay your installments until the end of the installment period to avoid car confiscation. A used car that is too old can be disapproved by a leasing company when you are applying for a credit. The maximum age of a used car that is going to be sold on credit is 12 years until the installments are complete.
Choose a Used Car Dealer with Special Offers
Find a dealer that offers you a special offer like a discount. By choosing one with the best offer, you can get a used car with a lower price. Nevertheless, keep in mind that you need to check whether the condition of the used car that you want is overall in a good condition. You also need to fully understand the terms and condition of the offer, so that you can fully enjoy the special offer and avoid scam.
Search for More Reference
After you find a trusted dealer, your task now is to find good references of vehicle leasing company. You can collect several leasing companies and make a detailed comparison of them. This can help you to find one best leasing company that meets your need and also help you to save more money.
Do the Calculation
Calculate the down payment, the total of your installments, and also all of the additional costs, like provision fees, fiduciary guarantees, and the vehicle insurance. The routine maintenance costs of the car should also be included, because the maintenance costs and repairs for a used car usually can be more expensive than the new one. If needed, you can also make a simulation of the cost calculation to predict how much money you need for buying and maintaining the car.
Know the Interest Rate
Considering how much interest on the credit is a wise way to decide whether or not you are going to take the installment from a certain leasing company. The greater the interest rate, the greater the installments that you have to pay, because the interest rate greatly affects the amount of the monthly installments that you have to pay.
The next tip is to pay attention to your installment period. The faster the period, the greater the amount of installments you have to pay, but the longer the period the amount of installments is getting lighter.
Complete All the Requirements
To be able to successfully apply for credit you must complete all the requirements. Each leasing company has different terms & conditions, so you better understand all the terms and conditions first before begin. The general requirements that you have to complete is a copy of ID card and the original, a copy of family card, a copy of bank account information, a copy of salary slip, a copy of tax payment receipt, and so forth.
Do the tips mentioned above before you decide to buy a used car on credit through a leasing company. Hopefully your credit application could run smoothly until the end and does not burden you in the future. Good luck!