Is a new car in your future? There are few things more exciting than driving home a new set of wheels. But once you’ve finished your research and your test drives, there’s one final thing you’ll need to take care of before driving off the lot: car financing. Your Wolf Point, MT, Chrysler dealer can help you arrange a terrific financing package.
1. Check Your Credit First
Before you set foot on the dealership’s lot, it’s a good idea to check your credit score. Your score is one of the biggest factors in determining what type of financing you can expect to be offered, and it helps to know what your score is before you arrive at the dealership. Buyers with the highest credit scores are the most likely to be offered a low-interest rate and other favorable terms.
If your score is low, you might consider postponing your vehicle purchase while you work on improving it. If you can’t delay your purchase, consider bringing on a co-signer or making a large down payment as a way of offsetting your low credit score.
2. Minimize the Amount You Finance
Borrowers who finance smaller amounts represent less risk to lenders and are more likely to be offered favorable financing. That means anything you can do to reduce the total amount you need to borrow can help. You can get your total loan amount down in several ways, including by negotiating a great price. Steering clear of some of the optional upgrades you can have added to a vehicle is also a way of minimizing the amount you need to borrow.
3. Look for Rebates and Discounts
Manufacturers occasionally offer special rebates and discounts on certain models. Rebates work in various ways, but sometimes they take money off the price of the car or are factored into your down payment. If a rebate is structured in a way that results in you needing to borrow less, it can help you get optimal financing.
4. Watch the APR
In addition to your credit score, there’s one other figure you should pay close attention to during the financing process: the APR. The APR, or the annual percentage rate, is the interest rate that will be applied to what you borrow. The lower your APR is, the less you’ll pay in interest on your loan.
5. Make a Down Payment
It’s possible to buy a new vehicle without making a down payment, but it’s not the smart way to go. Any money you can put down upfront will reduce the total amount you need to finance, improving the terms of your loan. Even a small down payment can help.
Don’t let the financing process stand in the way of your next new vehicle. By following a few simple tips and working with your local dealer, you’ll be able to easily arrange a financing package. Make your way to Northern Prairie Auto Sales and pick out your next vehicle today!
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