FAQ Car Finance

Auto Financing: Frequently Asked Questions

Finance departments can be confusing for many car shoppers, especially if you don’t work in the business world. With specialized language and dense contracts, it can be daunting to shop around for an auto loan. In order to make financing a little simpler for our customers, we’ve tried to list answers to frequently asked questions about financing.

Q:

What Are the Parts of An Auto Loan?

A:

The major aspects of a loan include the sticker price of the car, the interest rate, the length of a loan, your credit rating, the amount you put down, and whether or not the car is new or used. Higher credit scores, a shorter loan, and a new car all tend to cost less than their counterparts.

Q:

What Exactly Is An “APR”?

A:

APR or annual percentage rate refers to the yearly rate you’ll pay in interest on an auto loan. Most rates are fixed at a specific percentage, though some may change over the course of the loan (i.e. variable rates).

Q:

What Should I Bring to Get a Loan?

A:

You’ll need basic personal information, your social security number, gross monthly income amounts, employment history and information, and a driver’s license. If you’re ready to buy from a dealer, you may also need a co-signer, depending on your credit and the title of the car you’d like to trade in (if applicable).

Q:

Why Go to A Dealership when I Can Get a Loan at The Bank?

A:

The simple answer is convenience. Most dealerships can shop locally and nationally to find you the best rates, and many shoppers prefer dealership financing over the hassle of shopping on their own.

Q:

How Can You Be “upside-Down” on A Loan? What Does It Mean?

A:

If you’re upside-down on a loan, that means you owe more than the car is worth. This often happens if a car is under-insured and is in an accident, or any other scenario in which your car’s value depreciates rapidly. You can avoid this by saving up more for a down payment and carefully budgeting.

Q:

Other Questions About Financing? Stop by El Dorado Chevrolet Today.

A:

Our friendly staff has expertise in vehicle financing, and we’ll work with you to help you understand terms, contract details, and more. We’re dedicated to getting you behind the wheel of your dream car—simply stop by today.

Get Directions To Our Dealership

Search
Contact
Garage

Garage

Your garage is empty.
Save some vehicles to get started!
Chat
Search
Contact Us
Garage

Garage

Your garage is empty.
Save some vehicles to get started!
Chat
El Dorado Chevrolet 33.2263, -96.6333.