While financing a new car is relatively straightforward, used car financing can be slightly more complex. You may encounter some restrictions when financing a used car. However, Keyes Lexus can help you find a plan that works for most vehicles.
Restrictions on Cars
Typically, used cars that do not meet three conditions are not eligible for financing. A vehicle over ten years old, with more than 100,000 miles on the odometer, or that costs less than $5,000 often will not be approved. However, these are just rules of thumb, and the decision of any particular financier will depend on many factors.
Restrictions on Term Length
If a car is already relatively old, your financier may be unwilling to give you an extended loan term, even with good credit. This is also to the buyer’s advantage as it prevents you from being stuck in a payment plan for longer than you plan to keep the vehicle. A short car loan with slightly higher monthly payments has an unexpected benefit: you may rapidly improve your credit score if your payments are on time.
Paying for an Older Car
If your heart is set on a used car that may not qualify for financing, you may have to pay with cash. However, our extensive lender network outside of Lexus Financial gives you more options for financing our vehicles, including older used cars. Going beyond the dealership’s captive lender (the one affiliated with their OEM) can come with its own benefits, which you should discuss with your dealer or our finance department.
Finance Your Next Pre-Owned Car at Keyes Lexus
From our collection of Certified Pre-Owned Mazda vehicles to our wide selection of other makes and models, it’s easy to find your next used car at Keyes Lexus. Visit our Van Nuys dealership and learn more about financing from our expert team, then take a test drive today!
