5 things you should know about financing a used car

Whether you are a student and you are looking to buy your very first used car, or if you are looking to buy a second car, no matter the reason, here are 5 things you should know about financing a used car.

What is used car financing

Unless you have the full amount accessible to purchase your used vehicle, financing for your used car can be achieved in different ways, either directly with you Rive-Sud Chrysler used car dealership close to Montreal, who will offer you very competitive rates, or you can put in a request with your financing institution.

What is the perfect amount for used car financing, or monthly payments

In order to respect your budget and avoid getting into financial troubles because of car payments, there is a very simple and efficient rule of thumbs: the equation is 20/4/10. What does this mean? You should plan on putting down a 20% down payment, finance it during 4 years, and calculate 10% of your monthly salary or gross revenue for your monthly instalments.

What will I need to finance my used car

You will need the following documents:

  • A proof of residence and address;
  • A pay slip or any other proof of revenue.

How to be preapproved for financing

For used car financing, whether you have a good or bad credit score, or none at all, you can consult different institutions in order to find the best financing rates, whether it is with your financial institution or your dealership in Brossard, on the South Shore of Montreal.

Finding the best interest rates

On the market there are two different types of interest rates: fixed or variable. What is the difference between the two? Fixed interest rates do not change for the duration of your loan, while variable interest rates are more flexible, but include more risks, since they can fluctuate with the market and climb significantly.

To find out more about car financing, come and meet with one of our financial advisors at Rive-Sud Chrysler in Brossard, on the South Shore of Montreal, a few minutes away from downtown Montreal.