Understanding the steps to financing a car in Elgin and St. Charles is an important part of making a new car purchase. The more you understand about the process, the easier your transaction will be in the end. In reality, there are many things you need to consider about both the car and outside factors as you go through this process. Here’s a look at the five steps you should follow to get started:
- Determine The Price Range You’re Shopping In – You are really the only one who knows how much you can afford to spend on a new car today. While the lender will perform a credit check, the reality is that their check will only cover some basic expenses you have. You need to look at the big picture of your budget and decide how large of a loan you can actually manage month to month.
- Check Out Interest Rates and Incentives – As you shop for loans, remember that there are several trade-offs to be made with your lender. For instance, a shorter loan term usually comes with lower interest, but higher payments up front. On the other hand, some lenders are willing to stretch your loan out to make your monthly obligation more manageable. If there are incentives available through the manufacturer, they may also affect the structure of your loan.
- Give Yourself a Cushion – If you have determined what the absolute limit of your price range is, add in a little bit of extra cushion for the fees that come along with buying the car. You will need to account for taxes, registration, dealer delivery fees and more. This will bring your available funds for the car itself down slightly.
- Get Pre-Approved – Once you have an idea of how much money you want to borrow and what you plan on spending, now is the time to move forward with pre-approval. This is one of the most important steps to financing a car because it’s your ticket to actually closing the deal. This is when your credit will be run and you will be given a real number of how much the lender will allow you to spend. Take this with you to the dealership when you go test driving.
- Choose a Car – Now that you have the numbers in order, it’s time to choose a car at your West Dundee area McGrath Nissan dealership. With your pre-approval in hand, they will be able to guide you toward vehicles in your price range. Remember, you don’t have to spend every penny the lender offers you. In addition, you should plan on having some kind of down payment if you plan on negotiating.
These five steps to financing a car will get you from your couch out onto the open road. With a little bit of planning and preparation, you can get pre-approved for a loan in no time when you visit McGrath Nissan in Elgin, near Hanover Park, Bartlett and Carpentersville.