When it comes to taking out a loan, anybody is bound to get a little concerned. This is certainly true for people who are considering financing a car for the first time. Luckily, our financial experts at Lester Glenn Ford are here to educate our you about your car financing options.
The Language of Lending
To start, here are some basic terms you should understand before entering into a car finance agreement:
- Car loan: This is a contract between you and a lender where you agree to pay back the money lent to you to buy a new vehicle.
- Interest: Also called “financial charge,” this is the cost of borrowing money from the lender. It will be expressed as an interest rate, or annual percentage rate (APR).
- Term: This is the length of your loan, which typically ranges from 36 to 48 months.
- Down payment: This is the amount of money you will pay towards the purchase of your new Ford vehicle.
Why Your Credit Score Matters
Your credit score plays a significant role in getting approved for a loan. If your credit score is high, getting a loan with a low interest rate should be simple. With lower credit scores, getting approved for a loan may be tougher. Fortunately, Lester Glenn Ford’s financial department works with people with all types of credit scores to find a financial arrangement that works best for them.
Finding a Great Deal
When you’re seeking to get a loan for a new car, it’s important to shop around and compare interest rates on the market. We’ll gladly assist you with this and help you find the loan that is right for you. We hope to see you soon!