What kind of loan should I take out for buying a used car?

I could just use some advice on where I could look and what I should look for to get a small loan for a used car. I'm looking at something around the $5,000 area. I'd prefer reasonably low payments that I could pay extra when I have it.

What kind of loan should I take out for buying a used car?
You will want to take out a simple interest auto loan. You can either go to your bank, credit union, or even the dealership. When you make additional payments, be sure to send a separate check and on the subject line write 'To Principal Only'. This will allocate the check to go towards your balance rather than the next month's payment. Good luck and I hope this helps.
Reply:Wow, they would really apply any excess to the next month's payment instead of the principal? That seems so dishonest! Thanks for the advice. Report Abuse

Reply:What type of loan? Usually people take out an auto loan when purchasing a car. check your local bank or credit union for current rates.
Reply:That'd be your UCL. AKA your Used Car Loan. You can always pay extra on a loan. The extra applies toward the principle and will shorten the loan length but not the payment amount. A few bucks extra toward the principle is money that you don't pay interest on next month, or ever. The issue with such a small amount borrowed is that the lender will not lend for a long period, so your payment may not be as low as you'd like.

lily