What to Look Out For When Financing a Used Car

Check the Car’s History

Before committing to finance, ensure the car has a clean history. Look out for:

• Previous accidents or major repairs
• Outstanding finance owing on the vehicle
• Odometer discrepancies
• Proper servicing records

This protects you and ensures the loan is worth the investment.

Understand the Lender’s Criteria

Not all lenders treat used cars the same. Some have restrictions on:

• Vehicle age – older cars may have limited loan options
• Kilometres travelled – high mileage vehicles may be considered higher risk
• Loan amount limits – capped based on valuation

A Perth finance broker can shop around for lenders who offer the most flexible used car finance options.

Compare Interest Rates and Loan Terms

Used car loans sometimes carry higher rates than new car loans. Don’t just accept the first offer. Compare:

• Fixed vs variable rates
• Repayment periods
• Early repayment fees

Hanna Lending works with multiple lenders, ensuring you get competitive finance suited to your budget.

Inspect the Total Cost of Ownership

Along with the loan, think about the ongoing costs. Older cars may require more frequent servicing, parts replacements, or upgrades. Factor these into your monthly budget so you’re not caught out.

Financing a used car can be a smart move if you go in prepared. With Hanna Lending as your Perth finance broker, you’ll have expert guidance to secure the right loan and peace of mind knowing you’ve made a sound financial decision.