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.
Looking to get a vehicle for yourself but are also suffering from having bad credit at the same time? What you might not know is that having credit issues and purchasing that very car can actually go a long way in helping you improve your score.
Auto Credit Express breaks down the how this can help. Lenders are looking to get people through the dealership doors even if they have low FICO scores. Just because your credit is bad now doesn’t mean that it was in the past. If they can see that changes in your score occurred due to major life events, such as losing your job or experiencing a medical problem, then the odds are more in your favor of getting a good loan.
Before you do head into the dealership, however, there are things to keep in mind. First, that loan you’re getting after a dip in the FICO score will be at a higher rate than many consumers are used to. You’ll also want to make sure to make each payment on time, as well as other bills you have, so that you can qualify for a better rate the next time around. If you miss a payment on time, then it will take your credit score even lower down.
The point of purchasing a car in this case is to improve your credit while getting the vehicle you need. The best tips to do this are to make sure that you look for an inexpensive car, small or midsized. See if you can choose a loan term of 48 months or less. Make sure you check on the history of the vehicle. By following these steps, you place your self in a position to save money by trading out in 18 to 30 months for a better deal. Also, knowing that history makes sure you avoid thousands of dollars in repair bills.
Come on in to Bayside Chrysler Jeep Dodge and start the process of improving your credit while driving away in that car you need. We love to say yes at the dealership. Be sure to like our Facebook page and follow us on Twitter for more tips and deals.