Financing At Weber Chevrolet

Financing at Weber Chevrolet

You've picked out your next car, truck, or SUV, and you're ready to buy. But now what? Going into the financing process without any information can be confusing, so here at Weber Chevrolet, we want to simplify and explain this process so you have a hassle free experience.

Rates, Terms, and More

Your credit score is one of the most important factors in determining the rate and terms of your loan. With a high credit score, you can expect a lower APR ? meaning you will pay less interest on your loan over the duration of your loan. A lower credit score often means you will end up paying more in interest over the term of your loan. This is because a credit score is your ?rank? for how confident lenders are in your ability to repay the loan. For these reasons, it is a very good idea to know what your credit score is before you visit the dealership so you know what to expect. If you have a low credit score, there are many ways of bringing your score up. Buying a car is actually an excellent way to raise your credit. With every payment you make, creditors are more ?convinced? that you are able to repay loans. The longer you make your payments on time and in full, the more your credit will improve.

Rates might change depending on the type of vehicle you are purchasing. For example, a used car will almost always have a higher APR than a new vehicle. That is because the used vehicle might not last as long as a brand new car ? so the lenders are more wary of giving money out to something you might not want in 4 or 5 years. Another factor is LTV, or Loan to Value. All this means is how much of the actual value of the vehicle is being financed. For example, if you pay 50% down on a vehicle, the rate will most likely be lower than if you only have 5% down on a vehicle. That is because the lender assumes less risk when the value of the vehicle is more than the loan.

Equity is another factor when lenders consider the terms of your loan. If you still owe $6000 on your car, but it is only worth $4000, the remainder will either have to be paid off, or ?rolled into? your new loan. Rolling more money into your loan will likely increase the interest rate. This is related to the LTV we discussed in the previous paragraph. The more money you have to finance for your purchase, the higher your APR will likely be.

Taking advantage of manufacturer's incentives is an excellent idea for all vehicle shoppers. The auto industry is very competitive between brands, and big brands like Chevy and Ford are always offering incentives like 0% APR or special loan terms to win over customers. Be sure to ask your salesperson or financing manager about special incentives before you buy!

    Glossary of Terms:

  • LTV: Loan To Value
  • Down Payment: How much money you have to put towards the purchase of the vehicle.
  • Trade: Your current vehicle that you might decide to trade in to lower payments on the new vehicle.
  • Thin File: Not much credit history to base a score on. Either you have only a few accounts, your credit is relatively new, or both.
  • Slow Pay: A record of late payments on your credit report.
  • Debt to income ratio: How much your monthly debts and responsibilities are versus how much money you bring home in paychecks.
  • Payment to income ratio: How large your payment is versus the amount of money you bring home in paychecks.

What Will You Need?

When you are ready to finance, your finance professional will need you to complete a finance application. On this application, you will need to provide the following information:

  • Social Security Number
  • Date Of Birth
  • Current Address and Time Spent at this Address
  • Current Employer and Duration You've Been Employed There
  • Sources of Income Outside of Work
  • Gross Monthly Income
  • Financial Information (Including Debt Obligations)

Many of these items will appear on your credit report, but it is important that you have that information with you to simplify the process.

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