Buying a used car is a great option if you’re looking to save a few dollars, but it can be a tricky process. The car you select may have some hidden problems that you might not notice when you test-drive. Though the minor problems can be easily fixed, but these cars can also have major problems that may make you consider another car sooner than you expected!

The following points can help you to make more informed decision when purchasing a used car:

• Check car history: Even though no one can give you a guarantee that the car is perfect, it is worth the money that you will spend. The history report can help you find out problems the used car might have in the past, such as reported accidents, damage, rental use, etc.
• Inspect for common problems: Make notes about the VIN number, price, mileage, car’s features, what you like and what you don't like in every car you check. These notes will greatly help you in selecting as well as in the final deal negotiation.
• Check the car body: Take a walk around the car and look at the overall appearance of car. Look from all sides and check if the car sits at level or not. Often if the car is driven with a full load, the rear springs sag over time. And over the time, the wheel alignment may change, as the suspension parts wear out, which means tires will wear faster.
• Check the windshield: Check for cracks, scratches and other damages. These damages, if large enough, can cause the vehicle to fail the safety inspection and also the replacement may prove to be heavy on your pockets.
• Check the interiors: The condition of the vehicle interior is a good indicator of how well the car was taken care of. Mark any defects that you find like scratches, tears in the seat fabric, broken door handles, loose sun visors, etc. Be alert if you notice excessive use of the air freshener as these could be used to hide a bad odor. A bad odor in a car could be very hard to get rid of for a long time.

For more details, visit us at Greater Central Texas Federal Credit Union. We provide cheap and secured used car loans throughout central Texas. You can visit us at 3305 E Elms Road, Killeen, TX 76542 or call us at 254-690-2274.

• Short term loan: A short term loan is usually for less than 3 years and is a good option if you want to save money in the long run. A smaller duration implies low interest rate and less amount repaid at the end of the loan tenure. However, you may need to pay more in terms of monthly repayments.

• Long term loan: These can be defined as the loans that last for more than 3 years. These are generally preferred by borrowers who want to pay low monthly payments, despite of the fact that they end up paying more as the interest. Long term loans can either be secured or unsecured.

• Age: The age of the borrower has a major influence on loan term that he may be eligible for. Whether you are getting a loan from a bank or credit union in Killeen, make sure you inquire about any specific age criterion that they may have. Most lenders do not provide loan term loan to individuals who are nearing their retirement or have already exceeded that age. In such cases, you can either opt for a short term loan or inquire if you can allot a younger applicant to make the remaining payments post your retirement.

• Your income: Your income is also an important factor in determining the amount of loan repayments you can conveniently afford every month. To select the most suitable loan tenure, keep in mind your total income from all sources and the financial liabilities you have to bear, i.e., insurance payments, kids’ education, home rent etc. Therefore, you should choose a plan that allows you to easily pay off the loan in the minimum time period while retaining sufficient savings for unexpected circumstances, such as a medical emergency.

• Amount of loan required: The higher amount of money you borrow, more will be your monthly installments and interest payments. Hence, you should try to apply for a smaller loan so that you can pay the least amount of money at the end of the loan tenure. This way, you will not only be able to pay off the loan early, but also make considerable savings on interest payments.

• Rate of interest: Comparing the interest rate quoted by the credit union is also important while deciding on the loan term. Depending upon whether you are opting for a variable or fixed interest rate, your overall loan payments may vary. For variable interest loans, you may have to pay higher monthly installments in case of a long term loan. This may be due to the fluctuations in the market rate over the span of years. Short term loans, however, may not be affected much in this case.