GMC Financing FAQ
Looking to buy a GMC but you don’t have a lot of money to spend? Then you need to think about GMC financing. Here our GMC dealership aims to help you understand what this involves and the benefits it offers:
What Does It Mean to Finance a Car?
We know firsthand about all of the jargon in the automotive industry, and a lot of it is needlessly complicated. Financing a vehicle just means that you’re borrowing money to pay for it. If you have bought a home, it is very similar to the mortgage process.
How Does Financing Work?
Let’s say you’re interested in buying a GMC Terrain. First, think about how much you can afford to spend. Don’t get too bogged down by the total price of the vehicle, however. When you finance, all you need to do is put up some money for a down payment – the rest will be borrowed. Then, you’ll want to come up with a number that you’ll be comfortable paying every month.
Can I Finance a Used Car?
You’ll be glad to know that financing isn’t just an option for new car. If, for example, you have your eye on a used GMC Sierra 1500, you’ll be able to finance the purchase.
What Does the Financing Process Entail?
The financing process is pretty easy, and the first step involves fill out the online application. This will let you get pre-approved for a loan. It is important to note that one of the factors that will be looked at during the application stage is your credit score.
What If My Credit Score Isn’t Great?
The reason why your credit score is scrutinized is that lenders use it to determine what the interest rate on the loan will be. If yours is low, you may get a higher rate. The good news is that as long as you make your monthly payments on time, this can help raise your score, and eventually you may be able to refinance the loan to get a lower interest rate.
How Long Do I Have to Pay Off My Loan?
This is kind of up to you. A typical car loan is between three and five years. While you can go shorter – perhaps as little as 12 months – this will increase your monthly payments significantly. A long-term loan may seem great, but remember that those interest fees add up.
Any other questions about financing? Just get in touch with Patriot Buick GMC in Boyertown.