Dealership Car Finance: What You Should Know Before Applying Your work is done when you have clinched a great car offer at a dealership, right? No, this is not the case. In most cases, the negotiations are not really as difficult as getting financing for the car. That is, if you’re not prepared for it. Continue reading for some tips you should follow to make the car finance process easy. What are some of the things you should know about auto dealership finance? Let’s take a look: Interest Rate Charged Your rate is an important factor in your monthly payment. The lower your rate, the lower your payment.
Discovering The Truth About Sales
There are a number of things that will affect your interest rate. Your credit score is a huge factor, and something that you need to be aware of. Before starting to shop for a care, get a copy of your credit report. You can know whether or not you are charged a fair interest rate based on your credit score.
The 9 Most Unanswered Questions about Automobiles
Term of the Financing Another important thing to consider is the term of the loan. In the past, loans were usually 36 or 48 months – that was as long as they got. As cars get more and more expensive, auto lenders have offered longer loans to help keep payments manageable. Today, it is common to find a loan whose term extends to five years. There are even dealerships that are offering long term loans extending to 8 years. When you know about car financing, it will not be easy for a dealer to take advantage of you. When applying for financing, it is crucial to ensure the rate you are being given is suitable for your credit score range. The term of the car financing should also be carefully considered. Generally, the best loans are those who terms are below three years. If you need to finance a car for that long to afford the monthly payment, then you can’t afford that car! With the many vehicles available at the dealership, you can easily find one that you can finance for a reasonable term instead of sticking to one that will leave you paying installments for over five years. You may hear a salesperson asking you, “How much will be comfortable paying for this car?” This is a trap – don’t fall into it! When you indicate the payment that you will be comfortable with, the salesmen will have a ground on which to start profiting from you. You can end up in a deal where you don’t know how much you are truly buying the car for, how much interest you are charged and what is the term of the loan. While it is important to know how much you can afford, do not be quick to get into a deal before you have done your research.