The Most Common Car Finance FAQs
When it comes to buying a new or used vehicle it’s likely you will have to set up a car finance schedule in order to afford the purchase. If you have never financed a car in the past, it can be a new and exciting experience. Let’s go over some of the most commonly asked questions about the topic of car finance so that you can get a better idea of how this all works.
What Will I Need For A Car Finance Company?
When you go to apply for an auto loan at a local bank or the dealership, you will need a few things. The lender basically wants to assess your risk, which is how likely you are to pay back the loan. They will require you to give them your personal information, such as your date of birth, full legal name, and your social security number. You will need to supply them with your employment information and, in most cases, they will require a copy of your previous week’s pay stub to verify your income.
How Can You Get A Good Auto Loan Rate?
Stratton Car Loans lenders base their lending decisions on a person’s credit score and history. The best way to get a low-rate on your auto insurance loan is to have a high credit score. There are five main factors that go into your credit score. These include paying your bills on time, having low amounts out on your credit cards, keeping long credit accounts open, having minimal recent inquiries, and having a good mixture of debt types. The higher your credit score, the better your interest rate.
Should I Get My Loan From The Dealer Or A Bank?
There are two different car finance options available for you to take advantage of. These include direct lending from a bank and dealership financing. The best option is going to be different for everyone. When you go to a direct lending source you can shop around for the best rates at different banks. When you finance through the dealership, you can take advantage of special discounts and rebates that are not available to those who refuse dealership car finance.
How Long Is A Car Finance Loan For?
The length of your car finance loan depends on the specific lender and the terms you agreed to. There is no set number of years or months that a vehicle loan must be set up for. Both direct lenders and dealership financing typically offer between one and five-year financing options.
You should take the time to figure out how much you can comfortably afford to pay each month towards your new vehicle. Depending on the purchase price of the vehicle and the estimated monthly payment range you can afford, your lender should be able to give you the desired number of years that best suits your financing needs. Always ensure that whatever the loan term you are agreeing to, that you can comfortably afford the monthly payments.