Many shoppers finance their car loans, but it’s important to fully understand what it involves before sealing the deal. Here are some of the most common finance questions we get about financing your car.
Q: What kind of documentation do I need?
A: You need to have proof of income, such as a recent paystub; proof of residency, like a utility bill or mortgage statement; and proof of insurance that you’re adding your new car to your insurance plan. These are particularly important if you are a first-time buyer or don’t have a lengthy credit history.
Q: How do I get a loan?
A: After filling out a simple loan application, our finance department will work to find you the ideal loan for your needs, whether you have excellent credit, or your credit has had a few setbacks.
Q: Do I need a down payment?
A: A down payment is recommended, but not necessary to buy a car at Bert Ogden Auto Outlet. However, any money you do have for a down payment will lower the amount you need to borrow, which will save you money in the long run.
Industry experts do recommend a down payment of about 10-15 percent when buying a used car. Keep in mind, if you are trading in a car, the equity you get from that can be considered a down payment.
Q: What does pre-approval mean?
A: Pre-approval means you have been approved for a loan before selecting a specific vehicle. A pre-approval may come with a few stipulations, such as a maximum amount you can borrow.
Q: How much can I afford?
A: This varies greatly from person to person. In general, you should not spend more than 20 percent of your total monthly income on vehicle expenses. This includes a car payment, gas, service costs, and insurance. You can track your spending for a few months and cut out unnecessary purchases to help you save money for a car.
Bert Ogden Auto Outlet makes the car-buying process simple and understandable. We’re here to answer all your finance questions when you’re buying your next car from us.