Buy Here Pay Here Greenwood, IN

Used car financing is comparable to new car financing with a few differences: the interest rates and loan repayment term (months to finance the loan) vary with mileage and year of the used car, and finance agreements involving used car sales for people with bad credit typically have higher rates than new car loans for people with good credit. When you apply for financing to buy a new or used vehicle the auto finance company credit report and your credit FICO score. Based upon an examination of this data, the finance company will deliver an approval that states the interest rates that you are eligible for. Interest rates will change based on the length of the loan; shorter the finance term, the lower the interest rate will be. Used car financing specifically has one more variable involved. The auto finance company may also supply distinct interest rates for each used car model year. For each model year older than the current year the interest rate is typically higher. One last thing the lender will consider is the mileage of the used car. The finance company sets certain mileage conditions for a used car based on the model year. Newer model years have lower limits while older automobiles have higher limits, based upon how old they are compared to the current model year. If a used car's mileage is beyond the set limits, the lender may decline the loan. In other words, they are not declining you; they are refusing to finance a vehicle that has higher mileage than they allow.