Welcome to the finance center of Huffines Chevrolet Lewisville, a leading auto finance provider in North Central Texas. Whether you're planning to buy a brand-new Chevrolet or a top-quality used car from our dealership, our knowledgeable and experienced finance experts can help you navigate the often complicated process of getting a car loan. With our strong relationships with national, regional, and local financial institutions, we can be your one-stop-shop for all your car financing needs. So come to Huffines Chevrolet Lewisville for the best auto loan deals.Â
How Does Auto Financing Work?
Whether it's new or used, a vehicle costs a lot of money. Most people don't have enough cash in hand to buy a car outright, so they need to get an auto loan. Before you apply for car financing, you need to make a down payment, which is usually 10% to 20% of the vehicle's purchase price. The larger your down payment, the less you'll need to borrow.Â
You can apply for auto financing with a bank, credit union, dealership, or an alternative lender. Loan eligibility requirements vary depending on the lender, but they usually include a minimum credit score. In addition, car loan providers will look at your credit history to evaluate your likelihood of defaulting on your loan. Having a high credit score not only improves your approval chances but can also lead to a lower interest rate.Â
If your application for an auto loan is approved, your lender will provide you with a lump sum of money so that you can complete your car purchase. However, to repay the amount you borrowed, you have to make monthly payments to your loan provider throughout the duration of the loan. The length of an auto loan can range anywhere from 36 to 84 months, with 72 months being the most common term. Choosing a longer term will reduce your monthly payment, but it'll cost you more in interest.Â
After you've fully repaid your car loan, your loan provider will send the car title to you, making you the legal owner of the vehicle. On the other hand, if you fail to keep up with your monthly payments, the lender may repossess the car to cover their losses. As such, it's essential to choose an auto loan you can comfortably handle.Â
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