What to Expect When Financing a Vehicle | Hendersonville NC | Near Asheville, Canton & Greenville

Buying a new ride can be exciting. Upgrading from your past car to something nicer gives you a feeling of success. But before you drive off, you need to navigate through potentially confusing financing details.

We’re here to help, so you don’t have to feel intimidated by all that paperwork and those financial agreements. Learning about financing in advance will give you confidence. Keep reading to learn what to expect when financing a car.

What to do beforehand.

Finding out the status of your credit score is the first step to take before financing your car. Having a better credit score increases your chances of qualifying for a lower interest rate.

Do your research and find out what kind of interest rates you should go after. Knowing about the interest rates that other businesses offer will help with the negotiation process. Additionally, you can save time during the purchasing process by getting pre-approved.

Deciding what you can afford is also very important. It’s best to do this with your credit score in mind so that you can stay within your desired price range.

What you need to bring with you.

1. Proof of income Make sure to bring copies of your pay stubs from last month as well as what you’ve been paid to-date the past year.

2. Credit and banking historyBe sure to include any information about other outstanding loans or financial obligations you may have, as well as your financial history. These could be mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.

3. Proof of residenceYour mortgage statement or personalized mail are typically enough to provide proof of residence.

4. Proof of insuranceYour lender will need proof that your insurance company is aware of you new vehicle and that it's properly insured.

If you aren't financing with the dealership, you will also want to bring along proof of your loan.

Know what determines the loan terms.

An auto loan normally lasts between three to five years. Your lender will run a credit check and ask questions about your income. Your interest rate will be set based on how secure the lender judges your finances to be. You have a good chance of qualifying for a lower interest rate if you have a high income, a good credit score, manageable debt and are in good standing with your insurer. If not, you can plan your monthly payments based on a higher interest rate and try to make it as manageable as possible.

If you’d like to purchase a vehicle or want to know more about how to finance in Hendersonville, NC, drop by Hunter Volvo Cars at 2520 Asheville Hwy, Hendersonville, NC 28791 for a test-drive. We look forward to serving our customers from Asheville, Canton and Greenville!

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