Vehicle loans are one of the most common ways to finance a used car purchase, as they allow you to spread out the total cost of the vehicle over time rather than paying a large sum upfront. Simply put, car loans make car ownership more accessible, and they’re an especially useful option as used vehicle prices rise and are likely to continue to increase moving forward.
For instance, it’s estimated that used car prices are increasing by about 5 percent annually, with some popular used models even increasing by up to 10 percent. Why? A big reason is due to increased demand for used vehicles, especially as new cars increase in price due to tariffs and more advanced automotive technology.
If you’re in the market, don’t just shop anywhere for a used car loan — work with a lender you can trust. At Island Financial Credit Union, we specialize in used car loans and helping Long Island drivers get behind the wheel of the vehicle of their choice with affordable financing. Read on to learn more or contact Island Federal to apply for a used car loan today.
Why Choose a Used Car Loan in Long Island?
Why purchase a used vehicle on Long Island? There are a few key reasons:
- Used vehicles cost less upfront than new cars, helping make your money go further.
- Depreciation tends to be slower among used cars, meaning they’ll keep their value for longer.
- Auto insurance premiums tend to be lower for used cars compared to new cars.
Furthermore, if you work with the right lender, you’ll be able to get a similar agreement to if you were financing a new car. At Island Federal, we offer our new car rates on used vehicles for qualifying borrowers, adding even more value to the auto financing relationship.
What Are the Requirements for a Used Car Loan?
In addition to being a Member of Island Federal, you’ll need proof of income, proof of employment and residency information in order to qualify for loan approval.
You’ll also need to meet some vehicle requirements when purchasing a used car. For instance, Island Federal tends to only offer used car loans for those 10 years or newer or those with extenuating circumstances.
Used Car Loan Rates on Long Island: What to Expect
There are several key variables that impact used car loan rates. Here’s an overview of some of the leading factors:
- Economic conditions: Broader economic conditions, such as inflation and the Fed rate, influence interest rates.
- Credit score: The higher your credit score, the lower the interest rate you’ll typically be able to attain on your estimated monthly loan payment. Borrowers with an excellent borrower credit history may qualify for the lowest available rates.
- Loan term: Shorter loans tend to have lower interest rates than longer-term loans.
- Location-based costs: Where you purchase the vehicle can affect total costs. For example, Long Island buyers must account for New York’s value sales tax rate, which can impact the overall loan amount.
Visit Island Federal’’s rates page for our current auto loan rates.
Tips for Getting the Best Used Car Loan
It’s only natural to want to secure the lowest rate possible when shopping for a used car loan. Here’s a look at some of the tips for doing it:
- Get pre-approved before car shopping: Work to get pre-approved for a used car loan before you do your used car shopping. This helps you know your budget and what you can afford, and improves your negotiating ability. You can also typically secure a better interest rate by comparing offers from various lenders and reviewing their auto loan options.
- Improve your credit score: If your credit score isn’t up to snuff, work to improve it. High credit scores translate to low interest rates.
- Only purchase from trusted used car dealerships that will provide vehicle history reports and used car warranties.
Island Federal’s Local Dealership Network
At Island Federal, we have numerous connections to help simplify and streamline the used car-buying process.
Visit our local dealer inventory page to learn more about our partnerships and preferred dealer network. By working with a dealer within our network, you can ensure you’re buying from a reputable source.
Island Federal also offers a first-time car buyer program, allowing Members to take advantage of a low fixed-rate APR if it’s their first vehicle purchase.
How to Apply for a Used Car Loan with Island Federal
Applying for a used car loan with Island Federal is streamlined and easy. You can apply either online or by visiting your local branch. When you apply, be sure to have the following documents on hand:
- Your ID
- Proof of income/employment
- Bank or credit card statements (if not already a Member of Island Federal)
- Vehicle purchase information
After you’ve gone through the application process, you’ll receive a decision in as fast as a few minutes (though sometimes it can take a few business days). Credit approval is required before loan terms are finalized, and funding the loan usually occurs within a few business days of approval.
Take the Driver’s Seat: Apply for a Used Car Loan Today
If you’re ready to make a used car purchase, contact Island Federal Credit Union today to get pre-approved or apply for a loan. We offer competitive rates, Member-first customer service, and fast approval and funding. Contact us today to apply for a used car loan.