If you are looking to purchase a new vehicle, you might be wondering what financing options are available for you. There are a few things you should know about getting a car loan from your official Mazda dealership. Here are some tips to help you get the most from your loan.
1. Know Your Credit Score
It’s a good idea to check your credit score regularly. A low credit score can impede your ability to get things like mortgages and loans. Some renters will also consider a person’s credit score before agreeing to rent out a property.
Your credit score is also going to affect the type of loan you get from your dealer, as well as your interest rates. If you have a low score, you may get higher interest rates. But a low score should help you get the most competitive rates your dealership can offer.
2. Get Preapproved
One of the best ways to set yourself up for success with your auto loan is by getting preapproved. When you get preapproved, your lender will do a “hard” credit pull, which will temporarily lower your credit score. This credit pull will give your lender more personal information which means the estimated rates they give you will be much more accurate.
Once you’re preapproved, you’ll have a much clearer idea of what your budget actually looks like. This will allow you to keep realistic expectations while you’re shopping which in turn will help you find the perfect car.
3. Make As Large a Down Payment As Possible
When you find a car you like and you’re ready to make a purchase, it will be time for you to make a down payment. One of the benefits of purchasing a car through a dealership is that there will be a lot of flexibility in terms of how much you should put down.
That said, you should still aim to put down as large a down payment as you can. The larger your initial down payment is, the lower your subsequent monthly payments are going to be. Aim to put down around 20% of the car’s total cost.
4. Make Your Payments on Time
Once you’ve gotten preapproved, set your budget, and you’ve found the car you like, you’re all set after you’ve made your down payment! Now you just have to make your monthly payments until you’ve paid your loan off in full.
It’s normal to miss or delay a monthly payment every once in a while. Sometimes life happens and we forget, or we run into emergencies and have to spend that money elsewhere. But you should limit these late payments as much as possible to avoid incurring any major additional fees or lowering your credit score.
Car purchases can quickly get expensive. Getting financing can lower the financial burden and help you afford a higher-quality car. Are you ready to look into your financing options? Come talk to us today at Flood Mazda.
Image by Gerd Altmann from Pixabay
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