A Financing Guide for First Time Buyers
Are you thinking about buying a vehicle for the first time? If so, you are probably excited about getting your own car, but you might be wondering how you will pay for it. At Gerry Lane Buick GMC, we are committed to the needs of our drivers, and we are firm believers that everyone who wants a car should be given an opportunity to purchase one. That is why we have such a large selection of cars available, but you need to understand your financing options. What should you keep in mind?
Always Check Your Credit Score
Before you decide to purchase a vehicle, you must check your credit score. The higher your credit score is, the better your financing terms will be. That is because lenders believe that you are at a lower risk if you have a higher credit score. Unfortunately, not every credit report is accurate, and you do not want your credit score to be weighed down by things that are not your fault. That is why you should always check your credit report before you start the process of buying a vehicle. You can request one free credit report per year from all of the major credit bureaus.
Put More Money Down if You Can
Next, you must make sure you put down as much money as you can. You do not necessarily need to purchase a car entirely in cash, but if you can put more money down, you will get a lower interest rate. Even a single percentage point of interest can make a significant difference over the life of the loan. If you want to save on the price of your car, try to put down more money.
Understand the Relationship Between Loan Time and Interest Rate
In addition, you need to understand the relationship between the length of your loan and your interest rate. At Gerry Lane Buick GMC, it would be our pleasure to help you develop a financing plan that is as long or as short as you like. If you want to stretch the payments out over five years because you want smaller monthly payments, we can do that. If you want to pay off the loan as quickly as possible, we can shorten it to only a few months.
On the other hand, the shorter the loan, the lower the interest rate will be. Furthermore, the faster you pay off your loan, the less interest you will owe. That is because if you are willing to pay off your loan faster, the lender will see you as less of a risk. Therefore, think carefully about how long or how short you want your loan to be. It can have an impact on your interest rate.
Protect Yourself with the Right Insurance
Finally, if you decide to take out a loan for your car, you need to protect yourself with the right insurance plan. The first few payments you make on your loan will mainly go toward interest. This means that the value of your loan balance will not drop quickly until the end of the loan. Unfortunately, the value of a car drops quickly the instant you roll it off the lot. This means that if you total your vehicle, you might not get a check that is large enough to pay off the balance of your loan.
You need to work with an insurance company that can help you protect yourself. For example, gap insurance might be helpful. If you have questions about the math behind depreciation and your loan, it would be our pleasure to assist you.
Call Gerry Lane Buick GMC for Help with All Purchasing Needs
If you are buying a car for the first time, we understand that the process can be intimidating; however, you do not need to go through this process on your own. At Gerry Lane Buick GMC, we have a tremendous amount of experience working with drivers of all backgrounds, and we would be happy to work with you to help you find the right car at a price that is affordable for you. A member of our team is always standing by, so contact us today with any questions or concerns. Then, swing by our dealership if you would like to test drive a few of our vehicles!
Before you decide to purchase a vehicle, you must check your credit score. The higher your credit score is, the better your financing terms will be. That is because lenders believe that you are at a lower risk if you have a higher credit score. Unfortunately, not every credit report is accurate, and you do not want your credit score to be weighed down by things that are not your fault. That is why you should always check your credit report before you start the process of buying a vehicle. You can request one free credit report per year from all of the major credit bureaus.
Put More Money Down if You Can
Next, you must make sure you put down as much money as you can. You do not necessarily need to purchase a car entirely in cash, but if you can put more money down, you will get a lower interest rate. Even a single percentage point of interest can make a significant difference over the life of the loan. If you want to save on the price of your car, try to put down more money.
Understand the Relationship Between Loan Time and Interest Rate
In addition, you need to understand the relationship between the length of your loan and your interest rate. At Gerry Lane Buick GMC, it would be our pleasure to help you develop a financing plan that is as long or as short as you like. If you want to stretch the payments out over five years because you want smaller monthly payments, we can do that. If you want to pay off the loan as quickly as possible, we can shorten it to only a few months.
On the other hand, the shorter the loan, the lower the interest rate will be. Furthermore, the faster you pay off your loan, the less interest you will owe. That is because if you are willing to pay off your loan faster, the lender will see you as less of a risk. Therefore, think carefully about how long or how short you want your loan to be. It can have an impact on your interest rate.
Protect Yourself with the Right Insurance
Finally, if you decide to take out a loan for your car, you need to protect yourself with the right insurance plan. The first few payments you make on your loan will mainly go toward interest. This means that the value of your loan balance will not drop quickly until the end of the loan. Unfortunately, the value of a car drops quickly the instant you roll it off the lot. This means that if you total your vehicle, you might not get a check that is large enough to pay off the balance of your loan.
You need to work with an insurance company that can help you protect yourself. For example, gap insurance might be helpful. If you have questions about the math behind depreciation and your loan, it would be our pleasure to assist you.
Call Gerry Lane Buick GMC for Help with All Purchasing Needs
If you are buying a car for the first time, we understand that the process can be intimidating; however, you do not need to go through this process on your own. At Gerry Lane Buick GMC, we have a tremendous amount of experience working with drivers of all backgrounds, and we would be happy to work with you to help you find the right car at a price that is affordable for you. A member of our team is always standing by, so contact us today with any questions or concerns. Then, swing by our dealership if you would like to test drive a few of our vehicles!
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Gerry Lane Buick GMC
6615 FLORIDA BLVD
BATON ROUGE
LA
70806-4466
US
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