Tag Archives: down payment

Understanding How Bad Credit Affects Auto Loans

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One of the hardest parts of purchasing a vehicle is knowing where to even start.  It’s something that no one really ever teaches.  Education on getting a loan is something everyone should have to get consider that an auto loan is an important part of anyone’s life.  Here’s some advice on getting an auto loan and getting the best deal.

We’ve spoken about it before here, but knowing your credit score and what is on your credit report is vital.  Know your score and know if there is any bad credit dragging that score down. Look into getting it removed because if you can, it’ll help a great deal when it comes time to calculate a loan.

Make sure you understand the advantage of putting down a large down payment.  Down payments may not be necessary but there’s a lot of good that can come from being ready for one anyway.  A larger down payment at the time of purchase can lower the monthly payment.  It’s also helpful for people struggling with bad credit to obtain a loan.  Look over your finances and see what you could comfortably put down as a down payment.

Getting back to the bad credit, one aspect of an auto loan that is a great benefit to someone with bad credit is what it can do for your credit score.  So long as you pay your loan on time and with the proper amount, you’ll see a hasty turn around to the credit score.  Keep paying on time and when it comes time to trade in for a newer vehicle, you’ll have an easier time thanks to the improvement in credit score.

There’s still plenty of areas we didn’t cover.  Do time to research the subject and be aware of your personal finances, including credit score, and you’ll have a much easier time at the dealership.

If you need any aid in finding the right auto loan for you, then contact a sales rep at Bayside Chrysler Jeep Dodge.  We’ll work with you to find the right loan for the right new or pre-owned vehicle that suits your lifestyle.  We love to say yes!

What to Do With Your Tax Refund

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ID-100111818That time of the year has finally come and gone for the majority of Americans. I hope you weren’t one of the people rushing to get to the post office on April 15th because you waited till the last possible second to file that return. Luckily, it’s done for another year. Now a hefty tax return could be heading your way and a new problem comes with it. What do you spend it on?

Ebay conducted a survey to find out just what people were going to be using that tax refund money on. About a third of the people polled plan on using putting their check towards purchasing a vehicle. 25 percent plan on purchasing a vehicle. Thirty-one percent plant to use the money to add a second vehicle to their household or buy it for a child.

More people were planning on using the money for something auto-related that wasn’t necessarily a new or pre-owned vehicle. 57 percent were going to use it for service and maintenance of a current vehicle. 36 percent are going to buy tires. 13 percent plan on using the refund to pay off a car loan they already have.

What are you planning to do if you’re receiving a refund? If you’re interested in a vehicle, the amount of money you’re potentially getting can make a good down-payment to help with your rates and monthly payments. There’s a reason why you see a number of auto-finance blogs write about how fantastic tax refunds are at this time of the year.

Getting a tax refund and need a new vehicle, contact us at Bayside Chrysler Jeep Dodge. We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Tips to Improve Your Car Buying Experience

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Have you been holding out on getting that car you’ve been needing? A large number of drivers have been afraid of going into the dealership due to the recession. They’ve been trying to drive every single mile out of their current vehicle wanting to avoid purchasing a new vehicle because of money and poor credit. For many of those people, that wait can’t go any longer. There’s just no more life left in the old ride. It might be time, but that doesn’t mean you have to be afraid of what your credit score may lead to. We have some helpful tips to help you get the best deal possible.

Have a poor credit score? Time to give it a boost. The higher your score, the lower the interest you can expect. That means you need to take the time to review your score. Make sure that having an inquiry on your report won’t bring it down even more. It may take you sometime to get the undesirable material taken from your report, but it’s well worth the time. Having your score show improvement can make a great difference in what your rate is.

Another method that leads to a much better rate is to increase your down payment. Having more money right up front shows that you’re less of a liability. In case you’re wondering, the industry standard for a down payment is 20 percent of the purchase price. An example is if you’re purchasing a vehicle for $25,000, then the down payment will be $5,000. The more you’re willing to put down at the time of purchase will be beneficial when you need leverage to negotiate for a lower car loan rate.

What about if you’ve done all the homework prior to going in and just can’t find the finances for a new car? You may want to look into leasing a vehicle. Leasing means that you’re not buying the car. That means your rates are more likely going to be lower than if you bought. Another plus of going the route of leasing is that contracts usually only last for 2 to 3 years. When the term is finished, you can go into the dealership and lease a newer vehicle.

Any and all of these tips can lead to a much better buying experience. Make sure that you contact us here at Bayside Chrysler Jeep Dodge. You can view our new and pre-owned inventory online. Like us on Facebook and follow us on Twitter for more tips and deals.