Will you soon be buying your first car? Financing is a great option, as it allows you to get a great vehicle without needing to have a lot of money on hand. Here our Mazda finance department goes over some key areas you should know about.
How Does Financing Work?
Financing involves borrowing money for your car and then paying it off over time. You will supply a down payment and then apply for a loan for the rest.
How Much Should a Down Payment Be?
The amount you put up for a down payment will be up to you, but you should aim for around 20 percent. This results in not having to borrow as much money, which can shorten the loan term and lower your monthly payments.
What Role Does Credit Play with Financing?
Lenders will look at your credit score before agreeing to lend you money. If the score is good, you should have no problem getting a loan, and also securing a favorable interest rate. If your score is on the low side, you’ll still be able to get a loan, but the interest rate may be higher.
Are There Ways to Cut Financing Costs?
The good news with financing is that there are ways to lower your expenses. Going with a pre-owned vehicle as opposed to a new one, for example, could save you thousands.
Choosing a shorter loan term – while this will raise your monthly payments – will help you save money on interest charges. You may also want to think about using a cosigner who has a good credit score in order to see if you can lower the interest rate.
Start the Financing Process Now
If you’re ready to get the financing process started, Freysinger Mazda makes it easy, as you can just fill out our online form. You can also come down to our Mazda dealership to do this in person.
