Financing a vehicle should be the straightforward part of the purchase. Here are some things you need to know about:
Work backwards from the monthly payment
Most buyers start with the sticker price. It is usually more useful to start with the monthly figure you are comfortable carrying, then work backwards to the deposit and term that produce it. Three variables move that number: the deposit, the length of the term, and the rate.
- Deposit: a larger deposit lowers both the monthly payment and the total interest paid.
- Term length: a longer term reduces the monthly payment but increases the total cost.
- Rate: varies by lender and profile.
Trading in your current vehicle
A trade-in is applied directly against the price of your new vehicle, which reduces the amount you need to finance. Our team will appraise your vehicle on site and walk you through how the valuation was reached. Service history, condition and mileage all factor in, so bring any records you have kept.