Drivers typically take out a car loan of around 72 months. Paying off the vehicle over the life of the loan allows a good balance between a reasonable monthly payment and the total amount paid. However, taking a shorter or longer loan may be a better fit for your individual financial circumstances. Use the average car loan length as a benchmark, but you shouldn't feel constrained by this guideline and feel like you can't take out a shorter or longer loan.
Building your credit score by making payments on utilities or a credit card can help you get a better deal on your car loan when you're a first-time buyer. Dealerships may also offer special incentives for first-time buyers, so be sure to talk to the experts at your local dealership's financing center to see all of the options that are available to you.
Negative equity is when you owe more money for your vehicle than the vehicle is worth. This can be a difficult financial situation to navigate when you are looking for a new car loan for your next ride. If you only have a small amount of negative equity, a lender might agree to roll negative equity into your next car loan, giving you an easy way to recover your financial stability.
Paying attention to the car market and taking out a car loan when the average interest rate is low will help you get a better deal. Having a good or excellent credit score will also let you get better interest rates. Working out loan terms with the financing experts at your local dealership will give you access to their extensive resources, letting you get a more competitive interest rate.
As with so many aspects of financing a vehicle, deciding on the amount of money to put down with your initial purchase depends on several factors. If you have a surplus of cash on hand, putting a large down payment towards your auto loan can reduce the interest payments you have to make later down the line. Talk to the experts at your dealership and they'll work with you to figure out the down payment option that will work for you best.
We offer our customers a variety of tools that help them make the right decision when it comes to financing their vehicles. Our auto loan calculator makes it easy to see how a short or long-term loan will impact your financial outlook. This helps you plan effectively for any new or used car loans you intend to take out.
Financial constraints are a reality many people deal with, but you don't have to let this hurdle stop you from getting the vehicle you desire. Shopping for used cars is one option to consider, as these vehicles offer similar quality as new vehicles when bought from a trustworthy dealer at a much lower price. A cosigner can also help you get better financing, so asking people with good credit scores to vouch for you can expand the options you have available.
Long car loans are ideal for people who don't have much room in their monthly budget for a monthly payment. Making payments on your vehicle over a longer period of time will reduce the amount that you have to put toward each of those payments. Working with a lender who is flexible as to the length of your loan will let you get terms that suit your unique situation.
There's no better place to take out short or long-term loans for your vehicle than at our dealership. Using our credit union and bank partnerships, we'll help find lending options that make paying off your vehicle easy. Visit Landmark Dodge Chrysler Jeep RAM or give us a call at 816-521-2699 to learn more about the loan terms we can offer. You can also apply for pre-approval on an auto loan online today!
