Most first time car loans borrowers and applicants (or people with a low credit score)
try to go for used cars as these are cheaper and provide a good substitute for a new car (for some years). Although the money involved isn't much in these car loans, there are several things which the borrower should be aware regarding otherwise he/she may end up with a broken vehicle or get in some other sort of trouble. It is said that a product can only be trusted from its source but this fact cannot be applied to used cars. This is because one cannot know what hands have used the car as it is sold by the used car lot or dealership. Hence, it is best to look for a licensed used car dealership which ensures that the quality of the used cars is good.
Car loans on used cars might not involve much money but they have to be paid on time. Therefore, ensure that the car is being enjoyed at least till the loan term lasts. There have been several cases in which dealerships sell broken or stolen vehicles. In these circumstances, it is best to take a mechanic with yourself to check whether there are any problems with the car that is being purchased on car loans.
Another thing which could be asked is what sort of warrantee or guarantee is being provided on the vehicle by the dealership. Most importantly, always ensure that the title of the dead has been taken from the previous owner and is with the dealership. This way, one can be sure that the previous owner won't claim the car once it has been sold. Another thing to note here is that sometimes dealers sell similar deeds to different clients which can also bring up ownership issues. Hence, look at all the things before going for used car loans.