Thinking about getting a new vehicle from your Ford dealer in Clinton Township, MI? Before you go find your dream ride, learn about these tips for getting car financing so that you get the best deal possible.
1. Get the Right Information Beforehand
You can get a loan to finance a car even if you have poor credit, but you’ll end up paying a higher interest rate as a result. To get an idea of what to expect, know your credit score prior to coming in to purchase a vehicle. There are several services that can provide you with a credit report for free.
2. Put as Much Money Down as Possible
Putting more money down up front will reduce the amount of your loan, decreasing the payments that you need to make each month to pay back the loan. You may also get a lower interest rate by making a substantial down payment.
3. Keep Your Financing Term Short
While spreading out payments over a long period of time may reduce the monthly payments you make, it will cost you more in the long run. A longer financing term allows more time for interest to accrue. Instead, take out a loan for as short a term as possible to minimize the total amount that you end up paying.
4. Pay Smaller Fees in Cash If Possible
Along with the price of the vehicle itself, purchasing a vehicle comes with a range of additional fees. This can include things like the sales tax or documentation fees. You can include these fees in with your loan itself, but in order to avoid paying more interest, you’re better off paying these costs up front if possible.
5. Time Your Purchase Right
While you have plenty of control over the financing you get, broader economic factors will also play into your deal. Interest rates fluctuate due to how the economy is performing, so it helps to keep track of what current interest rates are. If possible, time buying a new car so that you can make your purchase at a time that rates are low.
6. Get a Co-Signer If Necessary
Young drivers or other potential buyers without much credit history can benefit from having a co-signer. Find someone that you can trust who has a good credit score to back up your loan, and you’ll see a reduced interest rate as a result.
7. Avoid Making Late Payments
It may be necessary at times to let a payment go a little bit late due to financial difficulties you’re facing. However, you should do everything in your power to avoid making this a habit. You’ll end up paying fees and penalties that cost you more than timely payments would, as well as damaging your credit score.
Whatever your financial situation, our team can get you the ride you want with financing that works for you. Come find your next Ford at Dorian Ford in Clinton Township, MI.
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