Car Finance Tips 101 from Carriage Mitsubishi
Before you head to the dealership to start the exciting car-buying process, it’s important to take some time to research and understand your financing options. Once you’ve decided on your budget, have found a car you’d like to take home, and a dealership with which you’d like to buy that car from, it’s time to finance your new car.
Carriage Mitsubishi’s Car Finance Tips
Choose your lender. If you aren’t planning to pay cash for your new car, you’ll need to find a lender. Possible lenders include credit unions, banks, private lenders, and the automaker, who will have their own finance arm. Compare rates, and get pre-approved once you decide which lender you plan to go with. Doing so will show the dealership that you’re serious about purchasing the car.
The science behind the interest rate. Interest rates are determined based on a number of factors. Lenders will advertise their best possible rates, but keep in mind that the rate they will be able to offer you may differ depending on your credit, the amount you plan to borrow, age and type of vehicle you have to purchase, where you live, and much more.
Choose your term. Generally, car loans are offered in 36-, 48-, 60-, or 72-month periods, and there are benefits for both carrying a longer-term loan, and a shorter one. Long-term car loans tend to carry higher interest rates, but stretching the life of the loan allows buyers to pay less on the actual car payment each month. On the other hand, if you can afford a higher monthly payment, opting for a shorter loan term will often mean a lower interest rate, and less paid in interest over the life of the loan.
Why You Should Finance at the Dealership
When you buy a new vehicle, financing your auto loan can be tricky business. There are numerous articles all over the Internet about whether you should finance at a bank, credit union, or dealership, and all the pros and cons of each. At Carriage Mitsubishi, we aim to make the process easier by making financing at the dealership the best possible choice. With a wide variety of financial institutions, online applications, and more, our dealership is the best place to finance your next car.
Instead of having to shuffle through different financial institutions in order to find the one who will give you the best deal, we do all the work for you. After you apply, Carriage Mitsubishi’s finance department will look for the best possible match, with great terms and rates.
Check out our online application today to see if you qualify for one of our many incredible offers. If you have any questions, don’t hesitate to call us. We’re happy to help anyone find the perfect match for them when it comes to great car loans – and great cars.