Most car shoppers rely on financing to purchase their
desired vehicle. While some chose finance directly through the bank or credit
union, a large number of people decide on "dealership financing". It is usually considered more convenient to
buy your vehicle and finance it at the same place, but there are also other
reasons to get your loan directly from the dealership. Harold Zeigler's
relationship with a variety of Grandville MI banks means they can offer buyers
a range of financing options. Periodically, Harold Zeigler will offer special
programs and low-rate deals that purely finance companies do not.
Before
Applying for Finance
There are many things you can do to better prepare
yourself before you even arrive at the dealership. Do some research! Before you
can decide what vehicle to purchase, you'll need to have a good idea what your
credit report looks like. Negative information, such as high credit card
balances or late payments, or errors can make it nearly impossible to get
credit. A poor credit score can greatly
raise your finance rate, making the vehicle you thought was affordable suddenly
out of your price range.
Once you have an idea of what creditors are seeing, you
can estimate a prince range. Check out the internet and auto buying guides to
find vehicles that match your needs and price range. If you have less than
perfect credit or a particularly tight budget, this step is very important.
Be sure to compare current finance rates being offered by
different banks, credit unions, and dealerships. The worst thing a buyer can do
is getting locked into a finance plan they can't afford because they are
confused or pressured. Being knowledgeable about your options and limits is the
best way to combat this.
What
is My Credit Score?
A credit score is a three-digit number generated by using
information in your credit report. It's designed to show creditors, like banks
and finance companies, the risk or likelihood that a person won't repay their
loan and become delinquent. The FICO
credit is the most widely accepted, being used by about 90 percent of money
lending institutions. FICO scores range from 300 to 850, where a higher score
indicates a lower risk and therefore a more favorable loan.
The largest percentage of your credit score is your
payment history, including any delinquencies on past loans. How much you owe on
other loans and accounts is also heavily weighed. Less important, but still
included in your score, is the length of your credit history, the type of
credit you've used in the past, and the number of new credit you've applied
for. If you aren't careful, applying for credit too often can bring down your
credit score. All of these factors combine to give everyone a unique and
specific score.
Financing
for Bad Credit
Less than perfect financial history is easy to acquire
and hard to rid yourself of. This can be a huge problem when it comes time for
a large purchase, such as a home or vehicle. Although it is more difficult and time
consuming, it is not impossible to be financed with bad or no credit.
You will need a valid driver's license, recent pay stub,
proof of residence, and a current phone bill to get started. Through our online
loan application, our financial experts can evaluate your credit history, work
history, and income to determine the best rate for your situation. We'll do
everything possible to help you obtain an auto loan that you deserve.
Paying your auto loan on time is one of the most
important factors lenders use to determine your credit score. Essentially, financing
your vehicle in a smart and affordable manner will help re-establish your
credit.
Used
Car Financing
Many banks and other lenders require a 20% down payment,
making a new vehicle out of many people's price range. Additionally, buyers
with credit challenges will probably find better loan options in the
used-vehicle market. Although the interest rate is often higher for a used car,
the actual price of the car is significantly lower and therefore gives the
consumer a greater chance of being approved for the loan.
Keep in mind, vehicles that are over seven years old may
not qualify for financing. Also, new cars can be financed for a longer term
than used cars. The math is simple; if you finance a six year old car for 66
months you'll be making monthly payments on a car that's over 11 years old! It's
unlikely to be a sound investment, and therefore not usually approved.
At Harold Zeigler, it's fast and easy to get approved for
a car loan. We understand that dealing
with past credit problems can be stressful and embarrassing, but we can help
consumers with just this type of situation.
Come into our Grandville MI dealership or contact us today and find out
what we can do for you!
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