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Where to get the cheapest used car loan?

You need about 3 minutes to read this post

Do you have your eye on your dream used car and are thinking about buying it? You do not have to commit all your cash at all, because offers prepared by banks offer help. However, before you decide on a random solution, check where you have a chance to get the cheapest loan for a used car. 

A car loan, although associated mainly with new vehicles, can be obtained for used cars. In this case, the year of the car is important, because banks do not provide financing for vehicles that are several years old. The reason is simple – such cars do not constitute sufficient collateral for the loan.

What kind of loan for a used car?

Persons applying for financing can choose from several forms of crediting:

  • standard loan
  • loan with a balloon payment
  • 50/50 loan

Which solution you opt for is entirely up to you. A balloon loan can be a good option if you intend to pay much lower installments. A 50/50 loan, on the other hand, is an option for people who have 100% equity but don’t want to buy a car with cash.

The cheapest car loan, or what kind of car loan?

If you choose a car loan considering only low interest rates, it does not necessarily mean the cheapest financing. You should be aware that the total amount to be repaid is affected not only by interest, but also by non-interest costs. 

If you want to choose a cheap car loan, first of all pay attention to the annual percentage rate of charge (APR). This is an indicator that includes not only the interest, but also the non-interest costs added to the monthly loan installment. This will give you a much broader view of the final amount to be repaid and give you an idea of how much the car you took out on credit actually cost you.

Which bank will give a cheap used car loan?

Wondering where you will get the cheapest used car loan? You do not have to guess or decide on a random offer, counting on luck. It is enough that you use a comparison service, such as finanse.rankomat.pl. With the help of a calculator available there you will get information about financing – according to the parameters you specified. Then there is nothing left but to compare available offers – not only in terms of costs, but also in terms of banks’ requirements.

In fact, you need only 3 minutes to get information about car loans in as many as five Polish banks: Bank Pocztowy, mBank, PKO Bank Polski, Santander Consumer Bank, BNP Paribas. Which of them will offer the cheapest financing? Use the calculator to find out.

Main image: Parker Gibbs/unsplash.com

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