Purchasing a vehicle for the very first time is an exciting milestone, but there are a few things to keep in mind to ensure the experience is a positive one. While finding the perfect vehicle is one important step, there’s much more to consider beyond engine specs and interior features. Read on to learn more about setting a budget and selecting the best financing option, then tackle the car-buying process with confidence!
Understanding Your Financial Situation
Because your car-buying journey begins before you step foot on the car lot, it’s important to arrive prepared. Begin by conducting an honest assessment of your financial situation, then determining how much you can afford to pay each month. Once you’ve set your budget, stick to it!
There are several Dodge, Jeep, RAM, and Chrysler financing programs available to help you secure a loan. A First-Time Buyer Program may be available, including incentives or loans for those buying their first vehicle – depending on the manufacturer. Keep in mind that there are often specific requirements, like proof of employment or a minimum down payment. These vary from one lender to the next, but our financing specialists are here to make the process as simple as possible.
You may be eligible for other programs as well, like those offering discounts to college students or military personnel. Be sure to ask if you qualify for any additional savings. Plus, many programs apply to both new and pre-owned RAM, Dodge, Chrysler, and Jeep vehicles!
Many lenders offer pre-qualification as well – a big benefit that allows buyers to determine how much they can borrow within their budget. Knowing your buying power ahead of time takes the guesswork out of the process, putting the fun back in finding the perfect RAM for sale!
Understanding the additional fees involved in new and used car financing is crucial too. Be prepared to pay loan processing fees on top of the sticker price. And don’t forget about taxes and registration costs too!
Here at Hoover Chrysler Dodge Jeep RAM, our team makes auto financing easier than ever. We’re happy to answer any questions you may have, whether you’re wondering about the difference between leasing and financing or the factors impacting your credit score. When you’re ready to get started, we’re here to help!
Exploring Financing Options
Bank Loans vs. Dealership Financing
Since most buyers can’t afford to pay cash upfront, financing is the next step after finding the right new ride. Many finance through the dealership for the sheer convenience, but getting the best deal possible may require some research – and lead you to another lender offering a lower annual percentage rate (APR).
The best option for you depends on your financial situation. Here’s what you need to know:
Financing through a dealership is similar to borrowing from a bank, except the dealer does the work on your behalf. Once you’ve completed a credit application, the dealer will submit it to various lenders. This gives you the freedom to compare interest rates and loan terms. Another option is in-house financing. “Buy here, pay here” dealerships are great for those with bad or not credit, although the loans secured often have higher costs and require more significant down payments.
Bank financing involves getting a loan directly from a bank or credit union. By eliminating the middleman, buyers can secure pre-approval before they even take a test drive. You may even be able to apply online!
First-Time Car Buyer Program
Ready to buy your first vehicle but lacking the credit history? No problem! Many lenders offer a First-Time Buyer Program specifically designed to help customers like you. A limited work history and no prior loans won’t disqualify you from securing a great deal, even if you don’t meet a lender’s typical requirements.These programs may come with certain requirements, though. For instance, they may only apply to recent college graduates or those buying a certain type of vehicle.
Leasing or. Buying: Understanding the Differences and Determining the Best Option
When you lease a vehicle, you agree to drive it for a predetermined length of time. The average lease lasts 24 or 36 months, with restrictions on mileage and modifications that you may wish to add. Once the lease period concludes, you have the option to return the vehicle to the dealer or purchase it for the amount defined in the lease contract.
Buying a car, however, is a long-term investment. Paying cash upfront allows you to own it outright, while Chrysler financing means that the vehicle is yours after the loan is paid off. Buying frees you from mileage restrictions and allows you to modify the vehicle any way you choose. When it’s time for a new ride, you can sell or trade in the vehicle at your discretion.
Navigating the Financing Process
Step 1: Establish a budget.
To set your budget, take a look at your finances and determine how much you can afford to spend each month on your vehicle. In addition to your loan payment, make sure to factor in insurance, gas, and maintenance costs.
Step 2: Make a list of must-haves and preferences.
Assess your transportation needs to determine which type of vehicle is best. Consider things like cargo space, towing capacity, infotainment features, and fuel efficiency. List other non-essential features that you’d prefer if available within your price range.
Step 3: Research vehicles in your budget.
There’s a vast amount of information available online, at the tips of your fingers! Conduct some research to narrow down your options, and if you have any questions about a specific model, don’t hesitate to ask our Chrysler financial experts!
Step 4: Find a local dealer and take a test drive.
Check reviews and ask around to find a reputable dealership you can trust. Then, stop by or browse their selection online. If you find the vehicle you’re looking for, take a test drive to see if the car is indeed a good fit!
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Financing