When buying your car, you may choose to finance almost all of the purchase, some of it, or, you may opt to pay cash. Or, you may be interested in better understand your leasing options. Read below to learn about the ground rule basics when purchasing with a loan.
Pre-qualifying for a loan is paramount. In most purchases where loans are involved, a down payment is required. – Cash or a trade-in can qualify as the down payment.
Did You Know?
Knowing your credit score is one of the most important things when buying a vehicle.
Ground Rule Basics:
- According to TransUnion, auto loan payback periods are typically growing. In 2013 payback periods were of five (5) or six (6) years in duration. So, you can expect a payback period of 61 to 72 months.
- The interest rate provided may depend upon your credit score; higher credit scores will insure you get the most attractive rates.
- The monthly amounts are consistent over the life of the loan. There should be no penalty for early payment.
- The buyer has ownership and possession of the car.
- Be sure to keep up the maintenance on the car. Follow the manufacturers schedule closely.
- Your car must be insured – abide by your state’s legal requirements. Click to learn about saving on insurance premiums.
- For more on Buying Terms, click on glossary.
Please contact any of our Sales Associates for more information or questions you have. Or, you are welcome to email us your question in the “Get in Touch” box to the right.