Have questions about financing a used Nissan? You aren't alone. Every day, hundreds of Americans venture into the world of car financing for the very first time. Some are new drivers purchasing their first cars, while others have only previously paid cash for vehicles through private sellers. Whatever the case, financing a used Nissan for the first-time can be both exciting and a bit overwhelming.
At McGrath Nissan in Elgin, we want you to feel confident in this decision. Especially when it comes to ensuring you are comfortable with the finance terms. The following are a few key questions you should always ask before financing a used (or new) vehicle. These questions will help you in finding the right deal and terms for you:
1. Are there any finance specials going on?
Most automakers will offer highly discounted lease or finance specials to drum up interest on slow-selling models. While generally these are reserved for new makes and models, some dealerships will likewise offer similar attractive rates for less popular models. So if you don't have a specific vehicle in mind and are flexible, maybe you just need a reliable sedan, a dealership may be able to point you to a quality vehicle with an attractive available finance deal.
2. What is the full amount due when the loan is signed?
In addition to a down payment, there are title fees, capital cost reduction, registration costs, taxes, and other side fees that you should consider before signing a loan. Make sure you talk with a finance team about all of these 'invisible' costs before agreeing to any terms.
3. How long are the terms? Are there pre-payment penalties?
The most common finance terms are 24, 36, 48, and 60 months but it's also not uncommon to find an odd-month deal, such as a 27-month lease. But in this type of scenario, a 27 or similar odd-month loan term is generally based on the nearest even-month deal, here a 24-month residual value in which you'll pay lower monthly payments but an overall higher price. Whichever deal you choose, make sure you understand any and all penalties that go with it. One common one is a pre-payment penalty in which some lending institutions will require borrowers to pay a special fee if they want to pay off the remainder of a loan early.
4. What is the interest rate?
This one may seem a no-brainer when financing a used Nissan but you'd be surprised at how many drivers take the first rate they can get! While interest rates are largely based on your credit history, most lenders will have some wiggle room. Use factors like home ownership, stable work history, and larger down payment to help you negotiate a lower interest rate.
Find Out About Purchasing & Financing a Used Nissan Today
Are you ready to take that step to purchasing a new (to you) Nissan? At McGrath Nissan, our team of professionals are here to help you throughout the entirety of the buying process, from helping you find the best vehicle for you and your family to negotiating amiable terms and finance rates. For more information about buying and financing a used Nissan, visit us today at McGrath Nissan.
Our dealership lot boasts a wide variety of both new and used Nissan models as well as a variety of other quality pre-owned auto makes. We are conveniently located at 945 East Chicago Street in Elgin and have helped customers throughout the area, including drivers from St. Charles, Algonquin, Crystal Lake, Hanover Park, Geneva, Dundee, and many more.