So you’ve shopped around, you’ve done your research, and you’re ready to drive home your new Chrysler. But before you do, you need to set up a financing arrangement. Fortunately, arranging car financing is easy, and your Chrysler dealer can help.
1. Shape Up Your Credit First
It’s no secret that the better your credit score is, the more favorably lenders will look at you and the more likely you are to be offered a low-interest rate. That’s why it’s a good idea to check your credit score early and take steps to improve it before you purchase your next vehicle.
And even if you don’t have the time to improve your credit score, simply knowing what your score is should give you an idea of what type of financing you can expect to be offered. If your credit score is low, it might be smart to formulate a strategy before you set foot into the dealership. Making a larger down payment or bringing on a co-signer are both strategies for offsetting a low credit score.
2. Look for a Low APR
As you’re weighing various financing offers, keep an eye on the annual percentage rate, or APR, associated with each one. The APR represents the bottom line interest you’ll pay on the amount you finance. The lower it is, the less you’ll be paying for financing. Your dealer will shop your financing application around to various lenders and bring their offers back to you. As you review them, look for the offers that carry the lowest APR.
3. Ask About Promotional Financing
Dealerships occasionally run promotions that involve discounted financing. These special offers, which are generally only available to buyers with excellent credit, often involve low-interest or even zero-interest financing. If you’ve got great credit, it’s worth inquiring about any promotional financing offers they’re currently offering.
4. Stick to Your Budget
Financing your vehicle is a perfectly normal and acceptable approach, but you don’t want to overextend yourself by taking on too much debt. Before you start conducting test drives, figure out what your budget for the vehicle is going to be and pledge to stick to it. This may mean steering clear of some of the optional amenities that come with a cost.
Lenders will be more likely to award you a low-interest rate if you’re buying a vehicle that is reasonably priced given your household income.
5. Go With a Shorter Loan
Loans that carry a shorter term, which means they are paid back over a fewer number of years, are usually the least expensive. This is because the more quickly you pay the loan off, the less you’ll pay in interest. Loans with shorter terms often carry a higher monthly payment, but they’re the smart way to go.
By following a few guidelines, you’ll easily be able to arrange a favorable financing package for your next Chrysler. Head on over to Ourisman Chrysler Jeep Dodge of Alexandria and pick out your next vehicle today!
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