You can save a lot of money on your next car purchase by going for a used but clean vehicle from a local Jackson Mi car dealer. Like most people, the financing option is the most logical and prudent one because who has thousands of dollars lying idle in a bank account? And yes, you can finance a used car in Rose City, the same way you finance a brand-new one.

In this post, I will discuss the best car financing options you can use to purchase a used unit in Jackson MI. From my experience buying and selling cars on behalf of customers, most used car dealerships in Jackson MI accept or offer more than one financing option for their customers. Let’s get right into it!

Finance Used Cars with In-House Financing 

Not all used car dealers, especially in the downtown areas of Jackson MI, offer in-house financing but the bigger ones do. Inhouse financing refers to a financing deal where the used car dealer is also the lender. You go to them then identify a vehicle and they offer you a financing deal right there and then after checking your financials without involving a third party.

One attractive aspect of in-house financing is that it is so convenient. You can walk into a car yard in Jackson and drive out with your car in less than an hour with everything handled right there. Most used car dealers with this financing option also tend to have extremely flexible approval requirements. This is perfect if your credit score is not that good and you need a used car urgently.

At the same time, you have more negotiating room with in-house financing because the dealers tend to be open to altering interest rates and repayment terms. You’ll also have someone to talk to directly in case your circumstances change unlike a banker or online lender behind a glass wall. 

If you want to get access to in-house financing at a used car dealer, you need to provide them with your records. This usually includes your proof of income, your physical address, and your employer’s details. Please note that documentation requirements vary from one dealer to another. Some are more relaxed (requiring only your basic details like phone number) while others need more records.

Your credit score does still come into play when applying for in-house financing at a used car dealership only that most will take lower credit scores – like 680 or lower- as compared to traditional lenders. However, having a good credit score – above 700- will make you qualify for more favorable interest rates and repayment terms. 

Finance Used Cars with Third Part Lenders -Traditional lenders 

Most of the used car dealers I know in Jackson MI have partnerships with one or more third-party lenders like banks, online lenders, and credit unions. When you buy from them, they can offer financing deals from any of these lenders based on your needs and credit profile.

Some of the reasons to go for third-party financing over in-house financing when buying a used car include lower interest rates, flexible repayment terms and more options to choose from. However, most third-party lenders tend to have stricter requirements for loan approval and may be harder to deal with in case your financial situation changes.

To qualify for third-party financing for a used car in Jackson, you need to complete an application and provide your paperwork which may include your proof of residence, pay stubs, your phone number, SSN, and more. Most used car dealers I have interacted with have an expert available to guide you through the application process so your request gets approved.

Alternatively, you could choose to finance your car purchase with your lender or banker. Just walk to your bank and ask for any car financing products they have and you will be guided on how to apply and be approved for a used car purchase. 

Beware of financing scams with some unscrupulous used car dealers. Some will allow you to drive off with the vehicle after signing the paperwork only to call you claiming that the financing application was not approved and you need to restructure the deal with a much higher interest rate or downpayment. The deal you signed with the car dealer is binding so you are under no obligation to comply.

Lastly, you can also choose trade-in plus financing to save some money and qualify for lower interest rates or downpayment. Trade-in deals involve taking your existing car to a used car dealer and having its negotiated price deducted from the final price of the unit you are buying. All the best!

By Grace