You've found the car, truck, or SUV that best fits your need - now what? Believe it or not, picking out your car is just the first step. You still need to:

  • Find a lender
  • Decide on the term that best fits your situation
  • Determine how much you will put down

If you're unsure about financing, keep reading and we'll walk you through the basics so you are better prepared.

FINANCING 101

LENDERS

Paying For Your New Vehicle

If you don't have the money to pay out of pocket, you'll need financial assistance. That's where a lender comes in.

  1. Look at banks, credit unions, private lenders, and the dealership to compare rates.
  2. When speaking with the possible lenders, ask for details about the rates, available terms, and other financing options to make sure you are making the best decision for you.
  3. When you find a lender that fits your needs, fill out their application to get pre-approved. If it isn't through the dealership, bring that pre-approval with you to the store to show them that you are ready to make a purchase.

RATES AND TERMS

I'll get the advertised rate, right?

What you find on a lender's website, or in discussions, may not be the rate you qualify for. The advertised rate is going to be the lender's best possible rate. To determine what you qualify for the lender will look at several factors including:

  1. The vehicle's price
  2. The age of the vehicle
  3. The term of the loan
  4. YOUR CREDIT SCORE

You'll find that most lenders offer loans in 36, 48, 60, or 72 month terms. The longer term loans will often offer higher interest rates but lower monthly payments, while the shorter terms will give you a lower rate but higher monthly payment. The long term loans can look appealing but it's important to keep in mind that you'll be paying more in the long term due to the interest.

DOWN PAYMENT

How much should I put down?

That is the question when you are working with a dealership. Many dealerships require a minimum down payment but, if you have it available, you can put down as much as you would like. If you have a vehicle to trade in, you can put that towards your down payment. Bottom line, the more in your down payment the less you will need to borrow from your lender.

The Hanlees Nissan finance team is happy to answer any questions you may have to help you feel at ease with your next car purchase.

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