What to Expect When Financing a Vehicle in Greenville, SC
Buying your next car is exciting, but confusion over financing details can get in the way of enjoying your new vehicle. All that paperwork and those financial agreements can seem overwhelming.
But don't worry. We've created a list of what to expect when financing a car. Keep reading to learn what to research beforehand, how loan terms work and more tips.
What to do beforehand.
Before financing your vehicle, you'll want to check on your credit score. A better credit score gives you a higher chance of qualifying for a lower interest rate.
You should also look into what kind of interest rates to aim for. Knowing what interest rates you can get from other institutions will help when you're negotiating. Getting pre-approved can also save you time during the buying process.
It's important to figure out what you can afford. Doing this with your credit score in mind will help you stay within your desired price range.
What you need to bring with you.
There are four documents you'll need to take with you when buying a vehicle.
- Proof of income
- Credit and banking history
- Proof of residence
- Proof of insurance
Make sure to bring copies of your pay stubs from last month in addition to what you've been paid to-date the past year.
You'll need to show information about how you've fared in the past financially, as well as any outstanding loans or financial obligations you may have. This could include mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.
Personalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.
Your lender will require proof that your insurance company is aware of your newly purchased vehicle and that it's properly insured.
If you aren't financing with the dealership, you will also want to bring along proof of your loan.
Know what determines the loan terms.
An auto loan usually lasts between three to five years. Your lender will run a credit check and ask questions about your income. What interest rate you get depends on the lender's assessment of how secure your finances are. If you have a better credit score, a high income, manageable debt and a good standing with your insurer, you'll probably qualify for a lower interest rate. If not, you can plan what your monthly payments will be with a higher interest rate and try to make it as manageable as possible.
If you?d like to purchase a vehicle or want to know more about how to finance in Greenville, SC, drop by Carlton Motorcars Inc. at 2446 Laurens Rd , Greenville, SC 29607 for a test-drive. We look forward to serving our customers from Spartanburg, Anderson and the Upstate!