There’s nothing more exciting than driving home a brand new Chevy. But once you’ve picked out your next vehicle and negotiated a great price, there’s still one matter you’ll need to attend to before leaving the lot: car financing. Fortunately, arranging financing at your Sallisaw, OK, Chevy dealer is a breeze if you follow a few easy tips.
1. Get a Grip on Your Credit Score
One of the most important steps you can take if you’re preparing to finance a vehicle is to check your credit score. That’s because your credit is a major factor in the type of financing package you’re offered. Buyers with the best credit scores are usually offered the lowest interest rates, and pay the least to borrow money as a result.
Before you head to the dealership, pull a copy of your credit score and history and take the time to have any errors corrected. And if your credit score is low, consider working on raising it before making your vehicle purchase.
2. Try Not to Finance Too Much
Buyers who are financing smaller amounts of money are also more likely to score low interest rates and other favorable terms because they represent less risk to the lender. Making a down payment and resisting optional upgrades to the vehicle are both strategies for keeping down the total amount you end up financing.
Taking advantage of any manufacturer rebates and discounts is another way of reducing your purchase prices and the amount you need to finance.
3. Watch the APR
As you work through the financing process, the annual percentage rate, or APR, is another key figure to pay attention to. This is the interest rate you pay on the amount you finance. The lower the APR is, the less you will pay in interest over the life of the loan.
4. Consider Bringing On a Co-Signer
Lining up a co-signer can help you land a more favorable financing package, particularly if you have a low credit score. A co-signer, usually a trusted friend or relative, takes on the responsibility of paying off the vehicle if the original buyer is unable to. Having a co-signer in place lowers your risk in the eyes of the lender, and you may be rewarded with a lower interest rate.
5. Pay Extra Fees in Cash
The purchase price you negotiated isn’t the only thing you’ll pay when buying a vehicle. Sales tax and dealership and documentation fees will also be added on. The smart approach is to pay cash for these fees. If you roll them into your financing package, which many buyers do, you’ll end up paying interest on those fees over time. Paying cash for those extra costs is the cheapest way to go.
Financing a vehicle can sound like a daunting task, but following a few simple tips will allow you to easily land a great financing package. Head to Blue Ribbon Chevrolet today to pick our your next car or truck!
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