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After years of use, it’s finally time to upgrade your ride. If you’re like most people and don’t have the funds to pay in full at a car dealership, applying for an auto loan will help cover the costs. Since you’ll be paying back the money over time, you should have a clear understanding of what affects interest rates and your monthly installments. With that in mind, this guide will help you find the right financing option to suit your budget.  

What You Should Know About Car Financing

Improve Your Credit Score to Keep Interest Rates Low

Take steps to improve your credit before applying for a car loan, as it will help you save money down the line. Those with good credit history receive lower interest rates, which helps reduce every single monthly payment through the life of your loan. Review your credit report before visiting a car dealership to spot any discrepancies. These can be corrected to raise your score, and at the same time, you’ll have a clearer picture of what your financing options might be.

Opt for a Larger Down Payment

When visiting a car dealership, think about what you can comfortably afford in financing over an extended period. Staying within your budget could prevent financial hardships later. Although you might be enticed by long-term loans, the interest rates attached to monthly payments could be steep. If possible, put a sizeable chunk of your available funds into the down payment. As you’re borrowing less money, you’ll have smaller monthly installments and more financial flexibility. 

Research Lenders Before Deciding

Haines-City-Florida-car-dealershipWhen applying for an auto loan, you can borrow funds from a credit union, bank, car dealership, or another third-party lender. Reach out to a few resources before committing to the terms of a loan agreement. If you opt for a long-term loan, the value of the car could decrease over the terms of the contract. This is a good reason to consider going through the car dealership for financing. Sales representatives can offer great rates and provide insights on car value to help you find the best loan. 

 

If you want to invest in a certified pre-owned car, contact the auto sales associates at FacilDeal Auto Center. Based in Haines City, FL, the car dealership is known throughout Polk County for its inventory of high-quality used trucks and cars by Chevrolet®, BMW®, Toyota®, and more top foreign and domestic manufacturers. To inquire about the inventory and flexible financing options, call (863) 588-2159. Visit them online to see what’s currently on the lot. 

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