What this also means is that the government will allow the manufacturers also to have access to funds to help customers to purchase cars. This is however not a bail out for the car companies, it is strictly to help the motor vehicle finance wing of the car companies. In a given year there is nearly 20 billion pounds worth of sales of cars in the U.K. nearly half of this is done through loan companies. This is being done because of the near 50 percent fall in orders for new cars. The latest news as far as the government loan guarantee is concerned is that the U.K government will be giving the auto industry nearly 2.3 billion pounds as financial help.

Cars that are popular when new are often equally popular as used cars, especially if they perform as expected in the reliability, fuel economy and safety categories. So the list below starts with the 10 most popular cars sold in 2009, and shows ratings for these same cars from earlier years. With this criteria in mind, here is a list of the ten best second hand cars of 2009.

If you purchased one of these cars in 2009, congratulations! If you are in the market for a used car, this could be a good place to start your search. The data for these models was compiled from several different publicly accessible consumer rating sites, including edmunds.com, msn.com and consumerreports.org. Ratings shown below are taken from model years 2003 – 2007.

What the numbers mean:
–Units Sold – Number of units sold in the US in 2009, indicating the relative popularity of each model
–Reliability rating – Average reliability scores published for 2003 – 2007 models
–MPG – Published city/highway miles-per-gallon for 2007
–NHTSA – Average rating from the National Highway Traffic Safety Administration crash tests performed on 2007 models
–Overall – Combined and equally-weighted score for reliability, fuel economy and safety

Ten best second hand cars of 2009

Model Units Sold Reliability MPG NHTSA Overall
1 Toyota Corolla 252,414 5.0 31/40 4.4 13.5
2 Honda Civic 244,603 4.8 30/38 4.6 13.2
3 Honda Accord 287,491 5.0 26/34 4.6 12.6
4 Nissan Altima 194,211 4.8 26/35 4.6 12.5
5 Toyota Camry 333,937 4.8 24/34 4.8 12.4
6 Honda CR-V 191,214 5.0 22/28 4.8 11.8
7 Ford Fusion 165,117 5.0 23/31 4.2 11.6
8 Chevrolet Impala 165,565 4.4 21/30 4.6 11.1
9 Ford F-150 283,613 4.2 15/19 4.7 9.3
10 Chevrolet Silverado 1500 245,306 3.8 16/20 4.7 9.0

In 2009, we entered the largest bad credit borrowing period ever. Used auto loans became very hot as there weren’t a lot of us that could actually get in on the new car trend, which was not too hot. Yeah, we saw the cheaper new cars come out, those even offering great savings in the fuel department, but where are we going to get the financing to afford to save gas—a bit redundant, huh?

As more of us were part of the used auto trend, more lenders had to accommodate the trend in order to have any real business. Big secret here: even if there are a few big spenders, businesses follow the flock, not the few! Used auto loans even prevailed through the Cash for Clunkers phase that went through, but for some of us really didn’t make much sense-I mean we are having difficulty with our finances so you propose we help businesses out by getting further in debt? Many of us just couldn’t afford to get into another car payment in return for our paid off cars.

The real answer for most of us was to get rid of the gas guzzling, more expensive car and opt for a smaller, more fuel friendly used vehicle, that would allow us to keep some profit from selling the better car; it made some of us cry, but sacrifice creates opportunity, and some of us have already benefited from the transaction. Bad credit lenders took dominance in the lending market as so many of us have lost our credit through the recession and various factors; this gave many of us the financing needed to get the used car that would benefit us the most.

The largest and most significant trend to us as consumers-mostly because we needed it-was the decline in interest rates during 2009. By the end of the year, interest rates on used auto loans were down to 7.34% from 7.67% a year previous. Not a large change, but as a trend usually goes on for a while, we are hoping to see it a bit lower for our sake!

There are many different ways that a person can obtain a used auto loan. Auto dealers are the obvious choice for many people. They are going to be working with many different lenders, so they are going to be able to provide financing for people even if they have some kind of credit problem.

Some people looking for a used auto loan will go with a bank or credit union to get the their auto financed. These options are used for people who tend to have a higher credit rating. Banks and credit unions are the ones that are going to be offering the lowest interest rates and terms on the loan.

If you are looking into buying a car that is less that five years old, you could consider obtaining an auto loan through the manufacturer of the vehicle. Getting and auto loan this way usually guarantees the person a great interest rate, but you are going to have to do some good research and understand if the interest rate is introductory or for the term of the loan.

There is always the option of logging onto the Internet and doing a search for the best used auto loan by obtaining quotes from auto loan lenders. This is going to allow you to compare the loans and their terms before choosing the one that fits your needs best. There are many banks and auto financing companies that allow this kind of thing to be done on their own website. They can also help you with securing the loan and understanding every aspect of the loan that you are going to betaking out. If you are one of the many people who have credit problems, please know that there is still the possibility of securing an auto loan. You are going to have to prove that you can repay the loan and have a down payment. Finding a used auto loan that fits you needs can take some time, but with some hard work and diligence on your behalf, you should have no problem.

If the seller of the ‘cheap car’ is not selling it for the sole necessity of the money there is a good chance the car will be sold for less than it is worth. Doing this completes the purchase and provides closure to the one selling the vehicle. This would be considered the rare opportunity mentioned earlier. Many times the ‘cheap car sale’ is completed by the owner and is sold through a private sale between the seller and the buyer. The sale price will not include a profit margin like it would if sold through a used auto dealer.

On the other hand, there are also car owners that will try to sell their vehicle via a cheap car sale when they realize something major is going on with the vehicle. This is when purchasing a cheap car can mean just that- a cheap car that has undisclosed issues. Unfortunately these scammers are a dime a dozen and this is when anyone in the market for a used auto needs to be very careful and exercise caution with their decisions.

When shopping for a used car instead of looking for a ‘cheap car sale’ look for that ‘rare opportunity’ with a knowledgeable friend for support and consulting.

Financing a car through the dealer is always more expensive than getting a car loan from a bank. The majority of auto car dealers make a lot of money from these financial loans rather than from the actual sale of the car. So once you have seen the car you want and know the price, go elsewhere for the loan.

And never tell the dealer how much you can afford a month. This gives them the advantage to jack up the interest rates to that particular amount.

All over the bill boards, you will see lot of ads claiming there is zero percent financing. No down payment, pay no interest. However, there is always a catch to that. Many companies will say that there have zero interest loans or you can get a rebate for a few thousand. And then the dealer will probably sit down and tell you all the benefits of going with a zero percent loan. And in all cases, you do the wrong thing. Getting a rebate and going through a bank loan elsewhere is much cheaper than going with a zero interest loan. You will definitely save some money at the end of the day.

There are many people today who simply walk into a lenders office with no idea about their credit score. And this is a big negative. If your credit score is bad, then the chances of you getting a loan are slim, and even if you get a loan, the rates will be high. The dealer will always tell you that he/she is trying to be nice to you and doing you a favor by providing you a loan with a high interest rate. Do not fall for it.

Everyone who wants credit should always first get their credit report and look at. Make sure there are no mistakes in it that will harm you. Once you know there are errors, you can get them rectified. Also if your credit score is bad, there are things you can do to improve your score. Go and pay of your credit card bills or your rent. The cleaner the record the better the chances of getting a good loan with low interest rates.

Income: Whether you are a solo business owner or work for someone else, it is vital that you bring evidence to show that you have a steady income. Having two pay slips from the last year will not cut it. You may bring in a few pay slips but your tax form for the past several years may help. Bring in your pay stubs. Any type of income that you have, you should have evidence of it. If you are getting a rental or have child support, bring the evidence. You can have the best credit but if you do not have an income, chances are you will not be getting a car either.

Credit history: Today, all lenders will ask you for the credit report. Make sure that you have a list of all the loans that you have had and what is the status. If you have had a solid record of payment, bring the credit report with you. Many times your bank may submit a statement on your behalf if you have had no problems paying your loans back.

Residence: Besides having a steady job, most lenders want to know about your proof of residence. If you have been living in a different state every 2 months, it does not look great. You must have proof of residence in one place for preferably 4-6 months to qualify for a loan. Having a PO Box number will not help.

Vehicle data: if you are panning to get a new or an old car, you will need to show the model, make and VIN of the car.

Car insurance: Many lenders will ask you for proof of car insurance. If you already have a car, bring in the car insurance papers. In general getting a used car auto loan is not difficult.

In general, getting a used car auto loan is not difficult. The lenders do have to loan money in order for them to be in business. So if you do your homework right, there should be no reason why you can be denied one.

If you have very bad credit try and work out the car loan first with your bank before going to the lot. This will save you a lot of headaches and you can make an informed decision without a salesman breathing down your neck. Here are some things you should have done before heading to the dealer.
Doing this research ahead of time will save you trouble down the road. There’s nothing worse than figuring out you can’t afford a car when you’ve already signed the contract so if you fail to prepare, then prepare to fail. 
And always remember the 3 golden rules:

Find local used auto loan rates

Research you car to find a median price

Avoid financing extended warranties into the loan.

Today, one can get the best rates for an auto loan by doing some finger walking. Go to your computer and search for used car auto loans. But make sure you have a copy of your credit score and the Vehicle identification number (VIN) with you. This number is etched on the right hand side of your car or any of your car’s legal paper work should have it. If you have already looked at a car and you want to buy, make sure you have the model, year and VIN of that car too.

If you have never applied for a credit report, you will need to get one. No institution will lend you money without this report. Each individual in the US is entitled to one free copy of their credit report each year. Some lenders will automatically give you a free report as part of the loan deal. Once you get your report, you need to see where you stand. If you have a low score, the chances of getting a loan are slim and even if you get one, the interest rates may be high. So understand your credit report and check to make sure there are no errors in it. If there are, get them corrected. The higher the score the better the chances are of not only getting the loan but also decent rates.

Once online, start writing down the quotes you get from each lender. Get the interest rates and the duration of the loan. Once you have compiled a list of about 10-15 auto lenders, sit down and compare them. Do not go for the cheapest. Look at the duration of the loan, interest rates and any other hidden fees. Once satisfied with the one you want, go back to the site and read the fine prints to make sure that what type of penalty exists when missing a single payment.

Do not just rely on the Internet to search for the best car loan. Go and check out some of the local banks and financial lenders and see what they have to offer. You will again need the same information that you required for your Internet search. Once you have the other rates, try and negotiate the best rates for you. And always read the fine prints.

Car dealers know that you’ve probably been turned down before so they feel they have the upper hand…

Some lenders do require a down payment and others do not. 100% financing is available from a number of lenders. Depending of course on your credit rating.

Some of the lenders also ask you to provide them with your bank account, so the monthly payments are deducted automatically. For this convenience and less paper work, some lenders will give you a small discount. So do not forget to ask for this option of payment. And in any case, you really do not want to go to the institution at the end of every month and stand in a line.

If you have a credit card in good standing with the lender (e.g. Bank) in question, and have never defaulted in payments you may also be eligible for a discount.

Some lenders also have arrangements so that you can get auto insurance from one of their agents right away. This only applies if you get the loan from them. However, you should always think about getting insurance right away. Go home and check out a few companies before you sign up.

While some lenders will recommend that you put up collateral or some type of guarantee, the last thing you should ever do is put up your home as collateral. The decision to secure your home for a vehicle loan requires one to understand the risks associated with this type of financing. While the lender will always make it sound like a great idea, it is in fact a very last resort. If you decide to use your home as collateral, then you must make all the necessary car payments on time. There can be no mistake about that. Failing to make a payment, means you can end up in a perilous position of having to sell your home. And you will not even have a car to sleep in either.

In general, be prepared and do not get a loan which is excessive. You want to borrow money which you can pay back in a reasonable time. And most lenders will help you do that.