Auto Financing 101Jan 23rd , 2019
Are you on the verge of purchasing a vehicle, but find yourself completely baffled by the prospect of financing? To help you see things a little more clearly, Solution Mazda is offering you this little crash course in the basics of auto financing to make your next transaction as hassle-free as possible.
CHECK YOUR CREDIT RATING
To qualify for an auto loan, you must first undergo a credit check, which primarily verifies your diligence in paying your bills. If you’re in the habit of paying your telephone, electric and credit card bills by their due date, your credit score will most likely be high. However, keep in mind that applying for credit several times within a short period (buying furniture on credit, purchasing a home and getting a vehicle loan, for example) can lower your credit score.
If you’ve never submitted an application for financing, there are two primary ways you can get it: by having someone with good credit co-sign with you or by enrolling in the Solution Mazda First-Time Owners Program.
SECOND AND THIRD CHANCE AT CREDIT
If, for any reason, you’ve had trouble making your payments and you’ve been refused credit somewhere else, it’s still possible to finance your future vehicle, thanks to the second and third chance at credit, available at Solution Mazda. Ask one of our representatives about the criteria you must meet in order to take advantage of this option. Does asking for a second chance make you nervous? To rebuild your credit, a second or third chance loan may demonstrate to creditors that you have the intention to keep up with your payments all the way to the end of a long-term loan.
AUTO LOANS AND INTEREST RATES
Interest rates can be divided into two categories: those for new vehicles and those for used vehicles. New vehicles benefit from preferred rates, that is, the interest rate offered by the manufacturer, which generally varies from 0 to 3.99 percent. On the other hand, standard rates, ranging from 3.69 to 9.99 percent, are reserved for used vehicles. The rates will vary depending on the year of the vehicle, the amount being financed and the term of the loan.
GETTING A LOAN AT THE DEALERSHIP
An auto loan can be granted by a financial institution or through the dealership. There are numerous advantages to dealing directly with Solution Mazda: you receive support if anything goes wrong with the loan, the vehicle purchasing process is centralized, and you have the option of adding loan insurance, which will protect you in the event of an accident, serious illness or death. Our financial agents can provide you with further information on these aspects of an auto loan.
AUTO LOANS AND PAYMENTS
When applying for your auto loan, you’ll need to decide on the term, the payment schedule, the amount of the down-payment and the options for exchanging the vehicle. Regardless of the amount of the payments, make sure they fall within the range of your personal budget.
Buying a new or used vehicle at Solution Mazda doesn’t have to be an anxiety-filled ordeal, especially considering that our team is there to support you throughout the various stages of the purchase process. Please don’t hesitate to ask us questions and tell us about your needs so we can give you the best possible advice to fit your particular situation. Are you ready to get financing? Contact us!