Questions to Ask Before Financing Your Vehicle

Are you considering Chrysler financing options for your next new vehicle? The financial experts at Cook Chrysler Dodge RAM suggest you consider these questions before financing a car.

What’s My Credit Score?

Your credit score can have a major impact on your auto loan. It affects your interest rate and can impact your ability to secure a loan or limit the loan options you receive. We encourage you to check out your credit score before applying for a loan and looking for ways to raise your score if it’s too low for your comfort.

How Much Can I Afford?

You also want to consider your budget before shopping. Experts recommend that you keep your auto expenses under 10 percent of your monthly income. This includes your auto payment, as well as your additional associated costs such as your insurance, fuel, and car maintenance.

An auto payment calculator can give you an estimate of the monthly payment you’d expect with any given total cost. Seeing the numbers can help you figure out what you feel comfortable spending.

What’s My Trade-in Worth?

If you plan to trade in your old car and put its resale value toward your new purchase, you should figure out your trade-in value before financing. Putting the positive equity from your trade-in toward your new loan can substantially increase your down payment. This, in turn, can drastically limit how much you need to finance, and may even help you afford a nicer car.

What are the Additional Costs on My Loan?

When financing a vehicle, there are multiple costs associated with your loan. Variable factors, like your interest rate and annual percentage rate (APR), are important factors you should consider when weighing different loan offers. You also want to look at maintenance and protection plans, as well as their costs, to understand your complete investment.

How Do I Start the Financing Process?

We encourage you to visit our Chrysler dealership in Aberdeen, MD to chat with our financial experts about your financing options. Ready to get started? Submit an application on our website or stop in and see us today!