Used Nissan Altima For Sale
If you’re looking for a used Nissan Altima for sale, chances are there’s a significant amount of Altima’s to choose from. At the date of this post, a search revealed 368 Nissan Altima’s for sale within a 150 square mile radius of our dealership, VehiclesDirect.com. Not to mention, that’s just the 2015 model so the search for your perfect Altima can become a little overwhelming, to say the least. We have quite the selection of Nissan Altima’s all in great condition and most still with the factory Nissan Warranty still in place. There’s no need to pay more, all of our Nissan Altima’s are priced thousands below market value.
Used Car Financing
With prices averaging more than $31,000 for a new vehicle and $17,000 for a used vehicle, you might want to gain a better understanding about used car financing.
You have two financing options: direct lending or dealership financing.
In direct lending, you get a loan directly from a bank or credit union. You agree to pay, over a period of time, the amount financed, plus a finance charge. Once you enter into a contract with a dealership to buy a vehicle, you use the loan from the direct lender to pay for the vehicle.
Direct lending may offer you:
• Credit terms in advance. By getting financing before you buy the vehicle, you’ll know your rate and other terms when you’re shopping.
In dealership financing — another common type of used vehicle financing — you get financed through the dealership. You and the dealer enter into a contract where you buy a used vehicle and agree to pay monthly the amount financed plus a finance charge.
Dealership financing may offer you:
• Convenience. We offer used cars and financing in one location and have extended hours, like evenings and weekends.
• Multiple financing options. Our relationships with different banks means we can offer you a range of financing options.
• Special programs. Dealers may have low-rate or incentive programs for buyers. The programs may be limited to certain vehicles or have special requirements, like a larger down payment or shorter contract length (36 or 48 months). These programs might require a strong credit rating; check to see if you qualify.
Determine How Much You Can Afford
Before purchasing a car, take a look at your financial situation to make sure you have enough income to cover your monthly expenses. Then, if you want to finance a vehicle, the total amount you’ll pay will depend on the Annual Percentage Rate (APR), length of the contract and the selling price of the car.
Make the purchase only when you can afford to take on a new obligation. Check the overall costs. You may want to use the “Monthly Spending Plan” worksheet provided below as a guide. The only time to consider taking on additional debt is when you’re spending less than you take home. The additional debt load should not cut into any amount you’ve committed to saving, emergencies and other priorities. Saving for a down payment or trading in a vehicle can reduce the amount you need to finance and reduce your monthly payment. In some cases, your trade-in vehicle will take care of the down payment on your new vehicle.
If you owe more on your vehicle than market value, you have negative equity in your vehicle. Take this into consideration if you plan to use it as a trade-in. The longer your new credit contract, the longer it will be before you have positive equity in the new vehicle — that is, before it is worth more than you owe. If you have negative equity, you might need a bigger down payment or, depending on your credit, you can include the negative equity in your new finance contract.
Monthly Spending Plan
Consider all the costs involved, not just the monthly payment for financing a used car. Knowing your monthly spending and saving commitments and habits will help make your budget more realistic. Download our Excel Spreadsheet to help you calculate your expenses.
1. Complete Column 1 based on your current situation. Start with your monthly take-home pay. This is how much you have left after taxes and other deductions. Subtract the amount you need for all your saving goals and monthly expenses, including monthly credit payments and payments for housing and utilities.
The remaining balance is the most you can afford to put toward the monthly payment and any new related expenses, like car insurance.
2. Complete Column 2 based on your new situation. This column will show your new car payment and the adjustments you have made to accommodate your expenses and obligations. Adjust any expenses that might go up or down when you get a vehicle, such as maintenance and insurance.
The remaining balance in Column 2 will show you whether you can afford the new car payment and the change in expenses.
Used Car Financing, When You Apply
Our dealer has a Finance and Insurance (F&I) Department that will tell you about your used car financing options. The F&I Department manager will ask you to complete a credit application, which may include your:
• Social Security number;
• date of birth;
• current and previous address and length of stay;
• current and previous employer(s) and length of employment;
• sources of income;
• total gross monthly income;
After completion, we obtain a copy of your credit report. This has information about your current and past credit obligations, payment record, and data from public records. For each account, your credit report shows your account number, the type and terms of the account, the credit limit, the most recent balance and the most recent payment. The comments section describes the status of your account, including the creditor’s summary of any past due balances.
After reviewing your credit application, we’ll submit your loan to potential banks or credit unions to determine their willingness to buy your contract.
The banks evaluate your credit application using automated techniques where credit score, credit history, length of employment, and income and expenses may be weighted and scored. The bank will not deal directly with you when you finance through a dealer. The decision is based on your credit report and credit score, credit application, and terms of the sale such as the amount of the down payment. Each bank decides whether it’s willing to buy the contract and notifies the dealership of its decision.
Most consumers who apply for credit will get a free credit score disclosure notice. This notice includes your credit score, the source of that score, and information about where your score falls compared to other people.
Ask questions about the terms of the contract. Don’t ever leave the F&I Department if you’re unsure of what the terms are about used car financing.