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Things to Consider when Looking for a New Car

Things to Consider when Looking for a New Car

The current chip shortage has reduced the number of new cars being produced. This lack of new vehicles coupled with a limited number of used cars has created the perfect car buying storm.


Our Copetown auto loans team outlines a few things to bear in mind when you begin looking for a new car as the landscape has changed considerably.


Dealerships are under tremendous pressure to maximize their revenue from each vehicle due to that lack of inventory. This need to optimize revenue forces consumers like us to be proactive if we want to save money on our next car loan.


Understanding auto financing terms


Some terms are specific to the auto finance industry and you should pay close attention to them when looking for a new car.


Especially these two:


APR: This is the annualized interest rate you are being charged and all loan contracts must have this displayed.


Term: This is the length of the agreement, whereby if you made every payment on time by the end of the term your loan should be paid in full. Copetown auto loan providers like it when you take your time to pay off your loan, with each passing day the amount of interest you pay increases.


While there are many other terms, these two are the most important because they impact how much you end up having to pay.


Auto loan providers


With interest rates at all-time lows, new auto loan providers are coming into the market all the time. These new lenders are hungry for market share and force the traditional banks and car dealerships to become more competitive.


If you are looking for auto loan providers online, do not give out your personal information until you spent a few moments assessing these lenders to make sure they are legitimate.


What some individuals do is create a website that looks like it provides auto loan quotes, but it is used to harvest personal information for identity theft.


We are not trying to make you paranoid but if the website does not have good reviews from other users, then you should steer clear of it.


If in doubt, use a dealership like ours. We won’t let you down!


Paperwork needed to secure an auto loan


You can get a quote for a Copetown auto loan but that quote is only valid if you meet the underwriting requirements that are set out by the lender. The lenders will need a few pieces of information before that quote becomes a firm offer.


Do you have a qualifying credit score?


If you want very competitive interest rates then your score needs to be 680 or higher. Each credit reporting agency has its specific scoring model but 680+ should be a safe bet.


Do you have a stable income that can be verified?


Prospective lenders will want to confirm that you have enough income to pay your current debts plus the new auto loan. The only way to effectively make that determination is by looking at your salary slips.


If you do not have salary slips on hand, the lender may want to see your bank account where your payroll is deposited.


By taking these proactive steps, you will be able to act fast when you do find the car of your dreams with the financing you can afford.


Contact Unique Chrysler for help, advice and competitive Copetown car finance and leasing.


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Categories: Auto Loan

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