What to Expect When Financing a Vehicle | Sumter SC | Serving Lugoff & Florence

What to Expect When Financing a Vehicle in Sumter, SC

What to Expect When Financing a Vehicle in Sumter, SC

If you’re ready to buy a new vehicle, then congratulations! You get to pick out what you want from the many options at our dealership, and our sales team is here to help you every step of the way. But when it comes to financing, we wanted to make sure that you know exactly what to expect so that there are no surprises later on. That’s why we put together this checklist of what to do and what to know before you come back to our dealership to buy. So keep reading to learn more about what to expect when financing your next Mazda.

What to do beforehand.

One of the first things you should do before financing your vehicle is to learn the status of your credit score. The better your credit score, the higher chance you have of qualifying for a lower interest rate.

You'll want to do your homework on what sort of interest rates to aim for. Being informed on interest rates that other institutions can provide you will help with the negotiation process. Getting pre-approved can also help you save time during the purchasing process.

Additionally, it's important for you to find out what you can afford. It's helpful to do this with your credit score in mind so that you can stay within your preferred budget.

What you need to bring with you.

There are four primary documents you need to bring with you when purchasing a vehicle.

1. Proof of incomeBe 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 historyThis would include any information about other outstanding loans or financial obligations you may have, as well as how you've fared in the past financially. These could be mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.

3. Proof of residencePersonalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.

4. Proof of insuranceYour lender will require proof that your insurance company is aware of your newly purchased 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.

A typical auto loan lasts between three to five years. Your lender will run a credit check and ask you income-based questions. Your interest rate will be determined based on how secure the lender perceives your finances to be. If you have a better credit score, manageable debt, a good standing with your insurer and a high income, you'll likely qualify for a lower interest rate. If not, you can plan what your monthly payments will be with 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 Sumter, SC, drop by our dealership at 2540 Broad Street, Sumter, SC 29150. We look forward to serving our customers from Lugoff and Florence.