Tips To Finding Financing At Auto Dealerships
When deciding to purchase your next car, financing is probably going to be the best option for most consumers since it allows them to make payments over a fixed period of time. With auto dealerships, the finance desk or F&I is the main contact who is in charge of arranging the financing of your next vehicle, There are however important details to know when looking to finance your next vehicle.
1. The most important detail is to research the vehicle you want to purchase in complete detail.
By doing the essential research for the car purchase, you can get an idea of what the MSRP cost for the car is, what the invoice of the unit should be, and any additional charges for options and additional items. Often times, sites like Kelley Blue Book, Edmunds.com, and others prove as a valuable resource to give essential details on older and upcoming automobiles on the marketplace.
2. Knowing your credit is the next step.
Auto lenders go by FICO scores and knowing what is on your “three” credit reports is vitally important in getting the best financing terms for your next car. The higher the FICO score, the lower the Annual Percentage Rate, and the longer the term available for your purchase. Auto dealerships generally have captive auto lenders and then have alternative lenders available for their middle tier and high risk customers. By knowing what is on your credit report, you can help leverage the opportunity to get the best possible financing offers for your next car purchase.
3. Finding financing is determining whether or not gap or warranty contracts should be purchased on your next vehicle.
Gap protection will help you in the event that your automobile gets traded and there is negative equity in the purchase. As most know, cars don’t appreciate in value and the Gap protection is probably the safest purchase that you can purchase during the next car purchase. A service contract though is always questionable by many experts. If you are looking at a new car purchase, the manufacturers warranty will generally cover the mechanical breakdowns longer than any service contract can offer. If looking at a used auto however, the service contract can protect you over a longer period of time in case of breakdown or damage. The caveat to any service contract purchase though, is the service contract is only as good as the company behind it.
By knowing your credit, knowing your car, and knowing the ins and outs of the details of the contract, you can carefully and successfully arrange the needed financing for your next car purchase. Be able to arrange the right payments that you can afford and manage versus payments you cannot afford, since that will further damage your credit and financial freedom. By utilizing the proper financial outline given, you can get the best APR and terms for your next car purchase and be driving off in your next car.