Apply for Financing
Apply for Auto Financing in Crestview, Florida
Cars have become a necessity in today's world. However, purchasing a new or used vehicle can sometimes be overwhelming, especially for new buyers. You have to research car models, compare prices, negotiate with dealers, and close the deal when you find your dream car. As well as that, few buyers can pay for a vehicle upfront from their savings. Thankfully, at Allen Turner Chevrolet, we have versatile financing programs to help you get into your new car without breaking your budget. This guide explains how to apply for auto financing in Crestview, Florida.
Understanding Auto Financing: Basics to Advanced Concepts
Auto financing is a secured or unsecured vehicle loan for buying a new or preowned car. The process involves borrowing money from a lender, such as a bank, credit union, finance institution, or dealership, to facilitate your car purchase. Borrowers must repay the borrowed amount over a specified period. The purchased vehicle typically acts as collateral for secured vehicle loans, meaning your lender may seize the car if you default on your monthly repayments.
The average monthly payments for new car loans have increased, reaching $735 in the first quarter of 2024. Conversely, payments for preowned and leased vehicles have decreased during the same period. 90-day delinquency rates on new vehicle financing stand at 4.4% in the first quarter of 2024. While banks hold the highest market share for car loans, you can count on our Allen Turner Chevrolet dealership for flexible vehicle financing in Crestview, Florida.
Types of Auto Financing Available
Whether you're seeking an SUV loan or truck financing, you have several auto financing options when shopping for a car in Crestview. You can buy a new or used vehicle with a secured or unsecured auto loan.
With secured car loans, the vehicle acts as collateral, meaning the lender can repossess it if you default on payments. Due to the low risk involved, secured vehicle loans have lower interest rates and are ideal for applicants with bad credit. They're also available from several sources. However, they can be inflexible and have mileage restrictions.
Unsecured vehicle loans don't require collateral. The lender will evaluate your creditworthiness to determine whether you qualify for auto financing. The best part is that there are no limits on your loan usage. You can use your new vehicle financing to purchase insurance and other protection packages. However, obtaining unsecured car loans is more complex, and they have higher interest rates. They also have shorter terms, making them more expensive for aspiring car buyers.
Key Factors Influencing Your Auto Loan Terms
When applying for financing, lenders consider various factors to evaluate your creditworthiness and determine your auto loan terms. Your credit score is critical in determining whether you qualify for auto financing. It shows your ability to repay your auto loan. A higher credit score makes you eligible for longer terms with lower interest rates. Aspiring buyers with a credit rating of 661 or higher account for 68.9% of vehicle financing countrywide. If you have a low credit score, you may require a substantial down payment to qualify for favorable auto loan terms.
Your employment status and income are other factors that influence auto loan terms. Lenders evaluate your work history and income to determine if you can repay your loan. Employed borrowers with stable incomes are more likely to get approved for vehicle financing. If you have any debts, consider paying them off to reduce your debt-to-income ratio and improve your chances for auto loan approval.
How To Secure the Best Auto Loan Rates
Securing the best auto loan rates doesn't have to be complex. Start by checking your credit report to reveal any discrepancies that might impact your credit score and affect your auto loan application. You can get a free annual credit report from companies such as Experian and TransUnion. If you find any errors, file a dispute immediately.
You can also lower your auto loan rates by placing a substantial down payment. Increasing your down payment is an excellent option if you have a low credit score or no credit history. It reduces the risk to lenders, increasing your chances of securing the best auto loan rates.
At Allen Turner Chevrolet, we offer flexible auto loan options for every buyer. Our finance experts consider various factors to give you customized vehicle financing options that meet your budget. To speed up the process, you can use our online form to get prequalified.
Using Online Calculators for Estimated Payments
Online payment calculators can help you determine your monthly payments based on the vehicle price, down payment, interest rate, and loan terms. You can also use them to determine your estimated payment when trading in your car for a new or used vehicle. Use our online payment calculator before visiting our dealership to get an idea of your monthly payments.
Mistakes To Avoid When Applying for Auto Financing
Many buyers make avoidable mistakes when applying for auto financing. They fail to shop around, increasing the likelihood of overpaying. Ignoring your budget is another mistake to avoid when applying for a car loan. Your budget determines how much you can afford, decreasing the chances of defaulting on your loan. You might be tempted to borrow excessively to buy your dream car. However, can result in delinquency if you can no longer afford your payments. Don't forget to review your credit score since it will determine your auto loan rates.
Financial Tools and Resources for Prospective Buyers
You can use various financial tools and resources to determine your buying power for auto financing. We offer a payment calculator that you can use to estimate your monthly payments. We also provide buyers with resources on how to trade in a car to a dealership.
Buy and Finance Your Dream Car at Allen Turner Chevrolet
Buying your dream car doesn't have to be financially draining. At Allen Turner Chevrolet, we offer versatile finance packages to meet your auto loan needs. Whether you're looking for a new truck loan or a used car loan, you can count on us to deliver.