Financing a vehicle is usually the most stressful part of the car-buying process. How do you get the best interest rate? How do you apply? What are lenders looking for? Learn the ins and outs of financing to quickly and seamlessly drive away in the car of your dreams.
The following are some key considerations to keep in mind in the car financing process:
How long is my loan term?
The loan term refers to the amount of time you have to repay the lender. If you sign up for a five-year term, in five years you'll pay the money back and will own the vehicle. Loan payments are usually made in monthly installments.
What is my credit score?
Lenders will mostly base your interest rate on your credit score. The higher the credit score, the lower the interest rate. Credit bureaus determine your credit score based on how much debt you have, if you pay bills on time, your debt-to-income ratio and other factors. People with lower credit scores pose a higher risk for lenders. Those without long credit histories - usually younger people - may also be charged higher rates.
How will I apply?
Visit Burnsville VW to learn about financing a new vehicle.