Tips for Getting a Car Loan from Tamaroff Nissan
You’ve done your homework, you’ve taken the test drives, and you’ve chosen the perfect car from the inventory. So now what do you do? Before you can drive off into the sunset, you’ll need to take a trip to the finance department. At Tamaroff Nissan, we make the process easy. We’re happy to share our best tips for getting a car loan that fits into your budget and lifestyle. From checking your credit score to calculating the right down payment, you’ll be a finance expert in no time!
1. Know Your Credit Score
Your credit score will play a big factor when securing auto financing. Generally speaking: the better your credit score, the sweeter the deal. Customers with credit scores topping 750 or better can expect the very best interest rates and promotions at most dealerships. However, the experts at Tamaroff Nissan have the experience and expertise to work with customers with any financial background. If you don’t know your current credit score, consider checking with your bank or a free credit score checking service to find out.
2. Shorter is Better
At first glance, you may think that a long-term loan is a better deal. You’ll pay lower monthly payments, and you get a long period of time to whittle down costs. However, experts recommend getting the shortest term loan possible. Why? Short-term loans may have higher monthly payments, but the interest rates tend to be much less drastic. That means you’ll pay less money in interest and more money toward the actual cost of the vehicle. Always opt for the shorter term loan if possible.
3. Don’t Forget Your Down Payment
Depending on your credit score, you may have the option to put down a very small down payment – or maybe no down payment at all! But experts recommend putting down at least 20 percent of the total cost for your own insurance. This protects you in the future if you decide to sell the vehicle before the car loan has been paid in full. If you skipped the down payment, you might owe more on the loan than the car is worth. That means you’re stuck in financial limbo. Check out our free online lease calculator to plan ahead!
4. Consider Cash Payments.
Most customers know that you can save quite a bit by paying with cash, but most customers don’t have thousands of dollars in loose change. So while paying the full cost of the car in cash may not be an option, you might consider paying in cash for extras. That includes sales taxes, documentation fees, registration fees, and other similar costs. This allows you to take those costs out of your loan, which can save you extra money! And when it’s time to talk insurance, you can check out what gap insurance covers. Want to know more? Contact Tamaroff Nissan today!