Auto Loans for First-Time Buyers

When first-time buyers look for auto loans, they often have a lot of questions. The first and most important is where to get the loan from. The good news is that our dealership offers on-site financing. This makes buying an auto a painless process. Let’s talk about what customers can expect with their first car loan.


The down payment is the amount of money a customer can put toward the overall cost of an auto. Not every car on the lot needs a down payment either. With or without a down payment, the amount you need to borrow from us to pay for the rest of the car is call the principal. Another way to think of the principal is that it is the starting amount of the loan. The monthly payments go toward repaying the principal and paying down the interest.


A lot of first-time buyers want to know what kind of interest rate to expect with their auto loans. The interest rate we can provide customers depends upon the credit score of the individual, the length of the auto loan and the work history of the borrower. In general, the higher an individual’s credit score, the lower interest rate we can offer. Shorter loans also can help contribute to lower interest rates as well.


Other factors that can lower the interest rate offered include having regular employment for at least two years and the resale value of the automobile a company is interested in buying. Having steady income shows that customers will be more likely to repay the loan. Choosing a more popular make and model also can improve the terms of the loan.


Sometimes customers need to finance the taxes and fees for auto loans as well. Those costs can be added into the principal amount of the loan. Getting a loan from us makes the process much smoother. We sell cars every day and can help find the best deal for our customers.

How to Get Approved for a Car Loan

If you’re shopping for your first car, you may feel like you’re in over your head. Even if you know the options available to you in terms of car loans, it’s still a big decision to make. You know that you need a loan, but how can you be approved? These three tips should help you to figure out how to get approved.


Remember Your Price Range


Don’t start looking for a car that is overpriced or expensive. You don’t want anything that’s going to have high monthly payments or that will be difficult to pay off. When it comes to getting a car loan, you have to be able to keep up with it. Some people make the mistake of getting a car loan that is outside of their price range just because they can get financing for it. Be careful of how much you take on. Pay special attention to your credit score when budgeting for a new car.


Remember to Bring Financial Documents


Credit score is one part of the battle to getting financing. The other half of the battle is having the proper financial documents in order. Make sure that you have proof of your income and proof of your credit score. Try to impress the lender with your finances.


Remember to Put More Money Down


One of the mistakes that many new car shoppers make is not putting enough money down. While some financing options may require you to put less down for a longer loan, these aren’t always the best option. The more you have to put down upfront, the lower your monthly payments will be.


Financing is a big deal when it comes to purchasing a car. If you want to get a car loan, it’s important for you to have all of the information that a lender is going to need. In addition, you need to know your budget and abilities month by month.