4 Things You Can Do to Get Financed
Few people are able to buy their next vehicle outright, even if it is a budget-friendly model. Because of this, dealerships and banks offer a range of financing options. Thanks to the financing, you make an affordable down payment followed by monthly payments that you can truly afford. Eventually, you will completely pay off your vehicle and own your truck or Jeep. With a little bit of research, you can get the best rates possible and start enjoying your car.
Check Your Credit Score
Before applying for financing, you will want to take the time to look at your credit score. While this isn’t completely necessary, it is a very good idea. This can give you insight into how banks and credit unions will view your financial abilities. Knowing your credit score can also help prepare you by giving you an indication of the interest rate you may receive. Most importantly, checking your credit score is your chance to make sure that everything on it is accurate. You don’t want to have your financing application denied or be given an extremely high rate because of an error on your report, and this simple step can prevent that.
Shop Around and Get Quotes
There is no guarantee about what type of institution will give you the best financing rate for your new car. Sometimes the dealership will have the best rate while other times it may be your local credit union. Because of this, you will want to do some research and arrive at the dealership prepared. Since the dealership will be a broker for several lenders, those with excellent credit can typically skip shopping around. However, if your credit is average or low, you should consider applying for a loan without completing the transaction to find out the type of rate you can expect. In some cases, you can even ask a credit union representative directly.
Pick Your Loan Term
The phrase loan term is used to refer to how long you will be paying off the loan on your car. A five-year loan term indicates that you will have paid back the entire cost of the vehicle in five years. As a general rule of thumb, you want to go with the shortest loan term that you can afford. While it will mean that you have to make larger monthly payments, you will get a much lower interest rate, saving you money over time.
Visit Your Dealership
The easiest way to get financed is to visit your local dealership with all of the information you need. Go to the dealership with the knowledge of your credit score and how much you can afford for monthly payments. If you had the chance, bring along some examples of quotes nearby banks offered you. After you have selected and configured your ideal truck or car, you will talk with the salespeople or the financial department. They will go over the financing options with you and help you every step of the way. Because most dealerships work with several credit unions and banks, they may even have several financing options for you, meaning you can easily get a good deal.