Understanding the Ins and Outs of Financing a Car

Many people are put off by the thought of purchasing a car and weaving through the sometimes arduous task of financing the vehicle. Having a great understanding of automotive financing is very important when it comes to getting the right price on your next new or used car. It is a wise decision to have the financing plan fully prepared before you even come to the dealership, that way you can save time and that will help the dealer find the perfect car for your lifestyle and your budget. Here are some great tips to keep in mind when considering financing a vehicle.

Know Your Budget

As with anything in life, it’s always a good thing to understand your budget and live within your means. This is absolutely essential when it comes to financing a car, while most people might come in hoping to buy a car that is way out of their budget, which just makes the process much more difficult than it has to be.

Decide on How You Want to Finance

Another important aspect to keep in mind is how you want to finance the car. There are two ways you can finance the vehicle, either a loan from the bank or directly through the dealership. While there are many benefits from financing through the back, many first time car buyers will find advantages with financing through the dealership. Not only will the dealer file and prepare all the paperwork, there can also be more incentive options available.

Know Your Credit

Be sure to have the dealership run your credit when you get there, this will help make the buying process even that much smoother.

Long-Term or Short-Term Loan?

Staying within budget is most important so whatever you feel you can afford on a monthly basis is what is best. It is suggested to never get a loan term that is over 72 months, and if you have to go over that long, it may be better to find a car that can fit within your budget. One tip to also consider is that the lower monthly payments that come with the longer term loans, rarely make up for the added interest you’ll be paying.

Come in to Westway Ford today and we’ll help you get a great deal on a new Ford Vehicle. 

Categories: News
; ;