Financing

October 19th, 2021 by

You have determined the vehicle you want, what’s next?

It’s time to talk about how you’re going to purchase that vehicle!


Process

Transperency Credit history/Score term length Down Payment cosigner Taxes & Fees Insurance Payment Quotes Credit Application


Transparency

We are dedicated to providing information to all of our customers to make sure they know everything about their transaction. What makes it easier for us, is for our customers to reciprocate the same thing. The more we know about your circumstances and information, the easier and quicker the process will be!


Credit History/Score

Your credit history is an evaluation of your responsibility for repaying debts, which determines your credit score. It’s important to know your credit score because it will determine how high or low your interest rate will be. The higher your credit score, the lower your interest rate will be and vice versa. If you don’t have a score and are wanting to get an auto loan, it’s time to consider building it. A credit score is based on an account 6 months or older of activity. One way to build, is to get a secured credit card with a deposit and low limit that is primarily used in small increments and paid on time. If you have a low score and want to increase it, make sure you’re not missing payments, are caught up on past due accounts, don’t open new accounts, and decrease credit card usage. You can get more information, tips, and see your credit score/history with many free online websites.


Term Length

Term length is how long you will be making monthly payments for your vehicle. They are in increments of 12 months and on average, buyers go for three to five-year terms. Your credit score will determine the interest rate, but will changed depending on the term length. The shorter the term, the higher payments can be, but with a lower interest rate. While the longer the term, the lower payments will be, but with a higher interest rate. You will pay less interest when you pay the loan off faster. Another determination is thinking if your vehicle will have value and be usable by the end of your term length. You don’t want to pay a lot of interest when the end result is paying more than what the car is worth.


Down Payment

Many resources have different suggestions of the amount to be put down for financing. Ultimately, it is for you to consider what will be the most practical. The amount you put down determines the interest rate, pre-approval process, and counterbalance depreciation. Interest can be lowered with a down payment because the amount being borrowed will be less than the value of the car. The pre-approval process will be smoother because the lender sees you’re able to pay off the loan. The depreciation will be counterbalanced because your payment won’t be more than the car’s worth at the end of the term.


Cosigner

If you have a low credit score and will have a high interest rate or can’t qualify for an auto loan. Getting a cosigner can help alleviate the challenges. A cosigner will be jointly responsible on the loan with you. Their credit history will be evaluated and determined if they will help by being signed on. Having a cosigner will improve your chances, lower the interest rate, and build your credit. Something to think about is that if you can’t pay, the cosigner will be held responsible and could lead to a difficult relationship with them. So, make sure it is someone close to you and you are able to make the monthly payments on time.


Taxes & Fees

In addition, there will be sales tax, registration fees, and documentation fees. They will vary by each state and county and are important to factor into your up front payment. Ashland County vehicle fees can be seen here.


Insurance

In order to finance, it is a legal requirement to have full coverage auto insurance. Prices will be based on the type of car, age, and driving background. The type of car will be assessed for it’s value, safety, and popularity (high theft rate). They look at age because it determines your driving history. Younger drivers might pay more while older drivers might pay less. Mainly, it depends on the driving background of any past car accidents, traffic violations, and insurance claims. Many auto insurance companies will give you free quotes and it’s best to look at different ones to see what you can get for ta reasonable price.


Payment Quotes

It’s ideal for you to know what you should expect for payment plans. Test out a few different variations by using our payment calculator or on the specific vehicle’s page.


Credit Application

With our Shop, Click, Drive tool, you can fill out an application straight from your interested vehicle’s page. In it you can determine you’re down payment and term length, trade-in value, add accessories, add protection plans, enter your personal information, and submit. We will review your application and get in touch with you for any questions and need for additional information. You’ll the come in, review the documentation, make any changes, sign, and get your vehicle!


 

Posted in Tip of the Week