If you’re worried about the process of applying for financing on a new Nissan, there are a few things you should know going in. Understanding how financing works at a dealership, and knowing your responsibilities after you’ve accepted financing go a long way toward getting you the deal you need without getting in over your head. Here are three things you should know about your Nissan financing options when shopping in Elgin, St. Charles and Bartlett.
- You Should Shop for the Best Rates – Whenever you apply for financing, your credit will take a hit. However, after the initial application, you do have leeway to shop for better rates. Often, the dealership will approve you through their financing department, but may not be offering you the best possible rates. If you can get approved through more than one lender, it is possible to ask for a rate match.
- Try Not to Overextend Your Payments – It may be tempting to extend your payments out as long as possible to lower your payments. The reality is that this results in you paying a ton more in interest, and often means that your car depreciates faster than you pay down the principal. You could find yourself ready to move into a new car three or four years later, but can be held back because you owe too much on your car to be able to trade it.
- Don’t Load Up on Extras – Everything from extended warranties to service plans and other add-ons can quickly add up on your final bill. Before you decided on any Nissan financing options, you have a right to know what each of these products are and what they cover. You can also turn them down. In fact, when you have the opportunity to look at you sales contract, make sure you ask about any extra charges that show up, including any fees for detailing, pin striping, etc. Many of these fees can be negotiated before you sign the final paperwork.
The key to getting the most out of your Nissan financing options is making sure that you aren’t taking on more than you can handle while minimizing your long term risk. Signing up for extended payments or extra add-ons can leave you underwater unnecessarily, and make it harder to trade up to a new Nissan later on. Make sure you look closely at your final bill before you sign off so you know exactly what is included. At McGrath Nissan, the sales and financing staff will guide you through all the steps when applying for financing.