6 Tips for Financing a Nissan
You’ve decided to buy a new or used Nissan but face some financing obstacles such as bad credit. That doesn’t mean that financing a Nissan is impossible when you face those kinds of obstacles. Far from it.
Here are some tips that will help you when financing a Nissan no matter your financial health is. First, however, let’s take a quick look at what your credit score actually is.
*Your credit score is a three-digit number that’s calculated based on your credit history. The lower the number, the worse your credit is. The credit score scale ranges from 300-850.
*Your credit history determines your credit score. Your history includes credit cards, student loans, auto loans, and mortgages. Your score also reflects your payment history, including late payments; how many credit lines you have open; and more.
How bad credit affects your car loan
Typically, a credit score over 740 will get you the best interest rate on an auto loan. If your credit score is below 580, you may end up with interest rates as high as 20 or 30 percent. And that means you’ll be paying thousands of dollars more over the life of your loan than someone with good credit.
Tips for Financing a Nissan
1. Check your credit report
It’s important to take the time to check your credit score rather than take your lender’s word for it. You’re allowed one free credit check every 12 months. Not only is it important to check your score, but it’s wise to check for any suspicious activity on your report.
In many cases, a lender will work with you depending on the reason for your low credit score.
2. Apply for a shorter loan period
While your monthly payments may be lower with a five-year loan compared to a three-year loan, the interest rate is generally lower for a shorter term loan. You’ll end up paying less for your car overall, but also have a couple of years without a car payment in which you can pay off other loans and raise your credit score.
3. Have a co-signer
Having a co-signer for your car loan can be a helpful option for getting a better rate. Here are some instances when financing a Nissan might be more advantageous with a co-signer:
*You have low or no income.
*You have a bad credit score.
*Your debt-to-income ratio is too high.
*Your income is variable.
4. Find a car dealer who will work with you
Financing a Nissan is easier than you think when you have a dealer – such as McGrath Nissan – who is willing to work with you. Most dealerships today have up to 20 lending institutions that they’ve worked with. One option is to secure your loan through a bank that has a relationship with the dealer.
5. Get pre-approved
If your credit is in particularly bad shape, it’s a good idea to get pre-approved for a car loan. With pre-approval, you submit your paperwork early, find out what obstacles you face, and potentially save yourself from a lot of headaches later on.
6. Shop for newer vehicles
The fact is that older vehicles tend to have higher interest rates than newer ones. Newer cars tend to offer the best financing. On the other hand, if you’re paying cash for your car – which eliminates the need for financing – an older car might be your best bet.
If you’re looking to finance a new or used car, contact the financing team at McGrath Nissan in Elgin. McGrath Nissan is short distance from St. Charles, Streamwood, Bartlett and the surrounding areas. Fill out a financing application here.