Whether you're looking for a new or used vehicle, how you finance can affect your future payments, the car's total cost, and your overall financial health. At Huffines Chevrolet, we know that the financing process can be confusing and frustrating, so we help you through every step of the process. Our trained professionals know how to get you the best deal for your car and affordable monthly payments you can fit into your budget. Here's what you need to know about car financing.
Frequently Asked Car Financing Questions
So, you've picked out a new car, truck, or SUV, and you can't wait to get behind the wheel. But how are you planning to pay for your new ride? If you're like most people, you don't have cash on hand to pay the full price for a vehicle, and that's where financing comes in. Affordable monthly payments can help you get the car you want on the budget you need.
If you're in the Lewisville area and looking to finance a new or used vehicle, you're in luck. Our financial team at Huffines Chevrolet is highly skilled, knowledgeable, and passionate about helping you find the financing plan that works for you. You can start by applying for financing online or visiting our location to learn more. Whether you already know everything there is to know about financing or this is your first time, our professionals can provide you with the support you need to get the perfect payments.Â
What Should My Credit Score Be?
Your credit score is a number that represents how well you handle debt. It reflects your ability to maintain a low rotating credit, make payments, and avoid exceeding your credit card limit. The higher your credit score is, the better terms you can get on a loan. The lower the score is, the worse your financing terms may be.
At Huffines Chevrolet Lewisville, we take pride in helping customers find the financing terms that work for them, no matter their financial situation. A credit score of 660 or higher is ideal for most people, as that can help you get a loan with good terms. Though lower scores aren't great, you can still get financing that fits your budget when you work with the friendly professionals in our dealership.
What Do I Need To Bring for Car Financing?
When you apply for car financing, it's a good idea to bring all the materials you're going to need during the process. This includes some form of proof of identity, such as an I.D., driver's license, or passport. Your proof of identity must have a photo of you. The next piece of information you'll likely need during the process is proof of income, which shows you have the funds necessary to make the payments on the vehicle. Proof of income can include a pay stub or tax document.
Most financing applications require you to fill in general information about yourself, such as your full name, address, and social security number. If you're a first-time buyer, it's helpful to know this information by heart before filling out the forms. If you don't know all your details, it's best to bring documentation, such as your social security card. Many lenders also require proof of residence, such as a utility bill or mortgage statement, to show where you live.
If you're planning on trading in a car at the dealership, be sure to bring the current registration and the title if you have it. You may also need to provide proof of insurance before or shortly after acquiring your new vehicle.
What Interest Rates Will I Get?
The interest rate on a car loan is the amount extra you pay as a fee for borrowing the money. This rate can greatly affect the total cost of the car, as it can add up over time. A lower interest rate means you'll spend less overall, while a higher interest rate means you'll spend more. A better credit score often means you'll get a lower interest rate, while a lower credit score often means a higher interest rate.
Each lender is different, and financial institutions can consider many factors outside of your credit score when determining the terms of your loan. For example, if you have a lower credit score but a higher down payment, you may still qualify for lower rates. According to the finance company NerdWallet, the average interest rate for someone with a credit score above 781 was 5.18%, while the average interest rate for someone with a score lower than 500 was 14.08%.
Do I Need a Cosigner?
A cosigner takes on some of the responsibility for making your payments if you don't make them yourself. Adding a cosigner to your loan is a way to lower risk for the financial institution, as it gives them another person to rely on for making the payments. Whether you need a cosigner to get a car loan depends on many factors, including your credit score, income, and credit history.
Many new car owners require cosigners because they simply don't have a long enough credit history. For example, someone who just graduated high school and is purchasing their first vehicle may need to have a parent or guardian cosign for them to receive the financing. Even if you don't need a cosigner to qualify for a loan, adding one can help you improve the terms. If you have a lower credit score, adding a cosigner with a healthy credit history can help lower interest rates on your loan.
Finance Your Next Car at Huffines Chevrolet
Buying a new car can be stressful - but it doesn't have to be. For a seamless and worry-free experience, consider getting your next ride at Huffines Chevrolet Lewisville. Our friendly professionals are great at helping you find the perfect vehicle and financing plan for you. To learn more about our current deals or to schedule an appointment with a financing professional, don't hesitate to reach out to our talented team today.