What You Need to Know About Getting an Auto Loan!

New York Used Car Finance | Smithtown Preowned Car Dealer

The decision to finance a new or used vehicle is a significant one. More and more car buyers these days are choosing auto loans rather than resorting to cash out of pocket. While the auto loan process can sometimes be a confusing and stressful experience, it doesn’t necessarily have to be. Understanding what to expect can make financing your next vehicle simple and pain-free. We’ve got what you need to know about getting an auto loan.

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Your Credit: Get to Know It

Because your credit indicates to lenders just how much of a risk potential you are, the first step in the auto loan process is checking your credit. You can obtain your credit report for free or for a small fee from sources like TransUnion, Experian, Equifax, and FICO. It’s usually easier to obtain an auto loan if your credit score is above 720 – however, those with low or poor credit shouldn’t be discouraged. Enrolling in automatic payment plans and decreasing existing debt are simple ways to boost your credit score.

Do a Little Shopping to Find the Best Rate

It’s always advisable to apply for a few different auto loans in order to improve your chances of being approved. Make sure you research your options and pay close attentions to terms and conditions. Explore a variety of lenders including banks, credit unions, employers, insurance companies, and independent auto dealers. Understand your own personal financial situation and what sort of payments you can afford.

Get a Pre-Approval Letter

Getting a pre-approval letter can be a big help to those seeking an auto loan. A pre-approval letter will let you know just how much you can spend on your new car. According to U.S. News & World Report, getting preapproved is a great way to find the best auto loan deals available. Just make sure you pay attention to the expiration date on your pre-approval letters; waiting too long to pull the trigger after being approved can significantly lower your credit score.

Do you have questions about applying for an auto loan? Visit your Certified Headquarters dealership in St. James, NY! Our New York Used Car Dealer is now serving Smithtown, Long Island, and the surrounding New York areas!