There is a perception among some that getting a used car means you do not need to get a lease agreement for the purchase. While this may be true for cars that are very old and only cost a few thousand dollars, most used cars are still a substantial investment. If you are buying a car that is only two or three years old, you will have to pay a lot of money upfront to avoid a lease. It might be a better idea to apply for used car financing in Troy MI and get the best deal for the short and long term.
Negotiating a lease involves a lot of work, especially if you have a weak credit score. Someone with bad credit is a big risk for lenders, which means they attach high interest rates to any car loans, even those on used cars. In these situations, doing your research and trying to get as many sample loan terms is the best way to find an agreement you can manage.
Aside from the lease, it is also important to make a decision about the type of car you want. Start with narrowing your window to a certain type of vehicle, then move towards a group of five or six car models that you are happy to buy. When you have more choices, it is easier to get a good deal. If you only want one car model and refuse to budge on it, you run the risk of overpaying.
Try to see if the car you own right now is worth any money. Even if you only get one or two thousand dollars from selling your old car, this money helps increase the upfront payment you make at the dealership. A higher upfront payment means less of the car’s balance is on your lease, which reduces your long-term spending on the car.