There are thousands of lenders offering used car loans; so finding the best used car loan rates is not that hard. However, if you are in the market looking for used car finance to buy a used car, you need to learn about used car loans and how to shop for one. A good one is harder to find.

Time is on your side so take your time and don’t feel rushed: Your goal is to find the best used car loan rates. By best used car loans, I mean one that has low interest rates plus favorable repayment plan. To find the best used car financing you need to invest some time in the process. As a rule you should not go for the first lender that is offering you used car financing.

Do comparative shopping among many lenders and be sure you are OK with who you select: A list of several lenders offering used car loan rates. Then check out their policies, reputation, years in business, and the rates they are offering. It helps to get quotes from each company. By comparing you will realize where each company stands and you will be able to make a sound decision. Furthermore, always keep in mind that the used car finance rates offered by the company are not fixed. You can always negotiate to bring them down.

Down Payment (and particularly a large one) can make a huge difference: Once you have found the lowest used car financing you may still want you can bring the rate further down. You can do this by offering a larger down payment on the car. The larger the down payment the lower the used car finance interest rate. Larger down payment also means you will be saving more because you will not be paying that much interest.

Those who have bad credit can choose to go for larger down payment to bring down the used car loan rates. Larger down payment means that the lender is taking less risk, which means a lower used car loan rates for the buyer.

Another point to understand is that a lot will depend on your financial condition. Those who have more financial resources at their disposal usually go for used car loan rates that have shorter terms; however, shorter term means higher interest payments. But they are okay with this because they want to own the vehicle over a shorter period and their financial condition allows them to do so.