Frequently Asked Auto Financing Questions

What Is Auto Financing and How Does It Work?

We often get questions, especially from newer drivers, about what it means to finance a car and how it works. We love seeing the relief on their faces; as we always say, it’s pretty simple.

When you want to finance a vehicle to buy it, you’ll borrow money from a bank, credit union, dealership, or lender to cover the cost of the car. At Gordie Boucher Nissan, we simplify this step by offering competitive rates and terms to get you the ride you love!

When you borrow money, you agree to pay it back in monthly installments, which include the cost of the car and interest, for a specified amount of time until the loan is paid off.

How To Get The Best Rates For Car Loans In Greenfield?

Every driver wants rates that work within their budget and wishes to pay off their loan quickly, but how do you get a perfect loan?

First, we recommend checking your credit, as that will determine what interest rate you could get. You’ll get lower rates if your report shows a high score, but if your history offers a low number, you’ll have higher rates.

If you have less-than-stellar credit, many drivers wait to build their score to help reduce rates and avoid financial strain.

Second, you have the freedom to shop around. If you want to see what a bank can provide you or a credit union, you can compare each offer and see what works best for you.

Third, you can always negotiate for better rates and terms. Our financing team goes the extra mile to showcase competitive offers and guide you through each loan to get the one you love.

Lastly, consider making a significant down payment if you want lower rates and a shorter loan duration. The money will go directly to the principal, which shows the dealer you mean business.

Can You Get an Auto Loan With Bad Credit?

At Gordie Boucher Nissan, we don’t want drivers with less-than-stellar credit to walk away thinking they’ll never get behind the wheel again.

We offer finance experts who can help you get the perfect loan and guide you through the process. We also recommend building your credit to help you secure lower rates.

To help secure a loan, you can provide a significant down payment, which lowers the lender’s risk. Alternatively, if you don’t have the time to rebuild your credit, finding a co-signer with perfect credit can help you get better rates.

What’s a Smart Way to Pay Off a Car Loan Early?

Everyone wants to pay off their loan as soon as possible, but if you don’t have the money to close it in one payment, it can seem like a never-ending battle!

We’ll showcase some ways to manage your loan, but whether you went with a bank, credit union, or private lender, check with your loan provider to ensure that there are no penalties for early or additional payments.

The first way to pay your loan off early is to increase your monthly payments. When you pay more for your monthly expenses, you’ll add that to the principal, which will help reduce your loan faster!

A second option is to pay more throughout the month. After you pay your original amount, you can set another date for a smaller payment to be sent, which will give you an extra monthly payment!

How Will Your Credit Score Impact the Terms of Your Loan?

When you get a car loan, your credit history will significantly impact the terms and rates you’ll see on your loan. If you have a higher score, you can get lower interest rates, better terms for duration, and increase the chances of approval.

If you have a score that could use some work, you could see higher rates added to your loan, less favorable terms, needing to pay more each month, and a reduced chance of approval.

What Is The Interest Rate on The Loan?

When drivers discuss interest and a financing team writes down different rates, you may wonder what that means and how it affects your loan.

Lenders get your interest rate from your credit report; you can see your rates depending on your score. Interest can also rely on the economy and Federal Reserve policies, another significant factor impacting your loan.

How Does a Down Payment Work?

A down payment is usually between 10-20% of the car’s value you put upfront, so why do so many drivers do it?

A down payment can lower the amount you need to borrow, reduce your interest, and improve your chances of approval. Significant down payments show that you want this vehicle and went the extra mile to prove it.

You’re a Financing Pro!

Understanding what goes into financing a car will help you make excellent decisions when you buy a car, and you can breathe easy knowing you can navigate the finance process as our fantastic financing team guides you so you get the perfect loan!

If you want to start your financing process, complete our finance application or visit us at Gordie Boucher Nissan in Greenfield, WI, today!