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.