If you’re in the market for your next dream vehicle, there’s a decent chance you’ll end up financing it. Arranging dealership financing through your Ford dealer is easy, and you’ll likely score a low-interest rate. It helps, though, if you come prepared. Here’s how to navigate the financing process.
Check Your Credit Score First
Your credit score plays a major role in determining what type of interest rate you’re offered. The better your credit score is, the more likely you are to be offered a favorable, low-interest rate, which saves you money over the life of the loan. It’s a good idea to check your credit score before starting to shop around. If your credit score is low, you might consider postponing your purchase while you work on bringing it up.
Even if you can’t delay your purchase, knowing your credit score gives you a good idea about the type of financing offers you can expect so that you can plan accordingly.
Pay Attention to the APR
A lot of numbers will be mentioned when you’re arranging financing, but the one to pay attention to is the APR. The annual percentage rate is the interest rate you’ll pay on the amount you finance. The lower the APR is, the less you’ll pay to finance the vehicle.
Keep the Term of the Loan As Short as Possible
You may have the option of going with a longer-term loan, which means your monthly payments will be stretched out over a longer period of time. Longer-term loans typically offer lower monthly payments, which can be appealing. But keep in mind that the longer it takes you to pay off the amount you borrowed, the more you’ll pay in interest. Keep the term of your loan as short as your monthly budget will allow.
Always Make a Down Payment
When you make a down payment, you lower the total amount you need to borrow for the car. The less you need to borrow, the more likely you are to be offered a low-interest rate. Always make a down payment when you’re purchasing a vehicle.
Keep Your Budget In Mind
Buying a new vehicle is pretty exciting, and you’ll have the option of adding on some pretty appealing amenities. Keep your monthly budget in mind, and try not to get carried away with the process. The vehicle you purchase should carry a monthly payment that fits into your budget. Think carefully about the cost of any vehicle you are considering and make sure you can truly afford it.
Financing a vehicle isn’t difficult, especially if you follow a few simple rules of thumb. When you’re ready to purchase your next vehicle, head straight to Fury Motors.
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