Auto loans are not something that people are familiar with in terms of the process. Most people come in and cross fingers hoping that the stars will align for a fantastic auto loan rate. Most of the factors that go into determining a person’s auto loan are an unknown quantity to most people. Here is a list of just some of the things to take into consideration when wondering what your auto loan rate may be.
Your credit score is at the top of the list. Understanding the score and knowing it are vital to the process. A high credit score opens a lot of doors and enables you to possibly qualify for a great auto loan rate. Getting that high score can be tricky, but paying off monthly bills and loans on time is a major part of helping that work.
Another way to raise a credit score is to be vigilant about the information present on the score. This is why it is recommend on going through your credit score on a regular basis. Look it over and see if anything is being misreported or just shouldn’t be there. Any and all harmful information present on a credit score is most likely going to negatively affect you. So get it off of there.
Down payments can be a major impact on getting that better auto loan rate. While there’s no magic number, the higher the cash you can put up front towards a vehicle, the better.
There’s plenty more factors to consider with regards to auto loans, but these are two very important ones to be aware of. Educate yourself and be ever mindful of your credit score, and the car buying experience will be that much better.
If you need help with financing, contact us at Bayside Chrysler Jeep Dodge. We’ll work with you to find the right possible loan to suit your situation. We love to say yes, you’re approved! Like us on Facebook and follow us on Twitter to see our monthly news and special offers.
Shopping around for an auto loan can be a trying experience, especially with a low credit score. It can seem impossible to find the car you want at rates and terms you can afford. Most people don’t know that they can improve their chances of getting a better rate, though, by following these 4 simple steps.
- Be Honest with Yourself: Take a look over your personal finances and ask yourself how much you can really afford to spend. Do you really need a new car, or are you better able to afford a good used car? If your finances are tight already, then a reliable vehicle that generally doesn’t need a lot of repairs is a smarter choice than something flashier (and pricier).
- Research Before Going Into a Dealership: When you go into a dealership, that dealership assumes that you are ready to test drive and buy. If you want to research model reviews, it is better to do so before going in. Otherwise, you could end up buying a car you didn’t really want or hem and haw over the pros and cons of a model and waste the salesperson’s time. It is always good to go into a sale certain that this is the car you want, but keep in mind that the dealership’s sales staff make money on commissions. Be considerate of that, and if you aren’t ready to buy, walk away and let that salesperson help another customer.
- Bring a Down Payment: Fox Business recommends having a 20 percent down payment for a new car and 10 percent for a used car. By having that down payment, it increases the chances of getting a better interest rate and lower monthly payments.
- Shoot For a Shorter Loan Length: The value of a car, especially a new car, depreciates fairly quickly, so it is better to go with a shorter loan length. Even if it means higher monthly payments, you will probably end up with a higher interest rate if you get a longer loan.
Are you shopping for an auto loan but running into problems because of your credit? Give Bayside Chrysler Jeep Dodge a chance to help you. You can see our online new and pre-owned inventory here, and be sure to like Bayside on Facebook and follow Bayside on Twitter to get the latest news from the auto industry.
You have bad credit and you need a car. You would be surprised at how common this situation is. So what is it you need to do in order to get that auto loan?
First off is knowing your credit score. This is the important number that will help you truly understand what you will be up against. It’ll also answer the question if you truly have bad credit. For all you know, the idea of you having bad credit may just be a misbelief. Your number may not be as low as you think. This is why it is important to know your credit score.
Once you have that score, know where you fall on the credit risk scale. Edmunds.com shows that if your score is between 601 and 660, that puts you in the Nonprime category. If your score is between 501 and 600, that is subprime and anything below 500 is deep subprime. Again, you would be surprised by how many people borrow at the subprime and deep subprime level. Edmunds estimates that this is 32 percent of used car loans and 10 percent of new-car loans.
Now that you know where you are located in your credit score, now is the time to plan. Put together your budget and know what you can afford monthly. The lower on the subprime scale you find yourself, the more you’re likely to pay over a longer period. If that is the case, then it is also time to start thinking about a downpayment. That can help you get a loan when you’re in the subprime category.
At Bayside Chrysler Jeep Dodge, we want to help you make your dream of owning a great car a reality, and we will work with you to find the right car to fit your needs. You can get pre-approval, check out our monthly specials, and shop our online inventory by make, model, and year. You can also get our latest deals and news by following Bayside on Twitter and Facebook and subscribing to our YouTube channel!