Financing Guide for First Time Buyers

If you are interested in purchasing a new car, you probably realize that there are plenty of options available for a car, but a new car can be expensive, it does not have to. If you do not have enough cash to purchase a car outright, financing options are available. It is important for you to put yourself in the best position possible to be successful regarding financing. At Leachman Buick GMC Cadillac, we are always available to help you finance the purchase of your car. Take a look at some of the most important points you need to know below.

Check Your Credit Score Now

If you are thinking about purchasing a car, you need to check your credit score now. Your credit score is going to play a significant role in whether you get approved. Even if you are approved, you want to get the best terms possible. The best way to do so is to maximize your credit score. You should check your credit score now because there could be mistakes on your credit report that could make it harder for you to purchase a vehicle. You need to correct these mistakes before you start the financing process. Otherwise, your credit score could be artificially lowered because of issues that are not your fault. Remember that you can access one free credit report every year from each of the three major credit bureaus. Go ahead and check your report ahead of time.

Have Money to Put Down

Even if you plan on taking out a loan for a car, you need to have money to put down. It is always better to put more money down when you can because your interest rate might be lower. The more money you put down, the less of a risk you pose to the lender, so you should be rewarded with a lower interest rate. Furthermore, if you put more money down, your monthly payment will be lower as well. You may want to wait a little while longer to build up more money to put down for your car.

Think About the Term

Next, you need to think carefully about the term of the loan as well. The term of the loan refers to how long it will take you to pay back your loan. We have a library of loan options available, and we can help you find the right term to meet your needs. For example, if you want to pay off your car more quickly, we can structure a loan that is only 12 months. Or, if you want to make the monthly payment smaller, we can stretch out the loan over five years. Keep in mind that the faster you pay off the loan, the lower your interest rate might be.

Get Gap Insurance

Finally, you need to make sure you get gap insurance for your car as well. Gap insurance is important because your car could lose its value faster than you pay off your loan. If you end up totaling your car, you need to make sure you have enough money to pay off the balance of your loan. That is why gap insurance is important. That way, you have enough money to pay off the balance of the loan and get a new car. If you would like to learn more about how gap insurance works, a member of our team would be happy to talk with you. Our experts are always available to help you with the process.

Trust the Team from Leachman Buick GMC Cadillac

At Leachman Buick GMC Cadillac, we are always available to help you make the purchase of a car more affordable. A member of our team is always available to help you, and we will walk you through the process, clearly explaining all of the options you have available. We understand that you need a vehicle, probably on a daily basis, and we can help you make the process more affordable. If you would like to learn more about how we can help you, contact us today to speak to a member of our team. We would be honored to assist you with the purchase of your next car.