What to Expect When Financing a Vehicle | Crittenden KY | Near Lexington & Cincinnati

When it comes time to finally buy your car, you're likely very excited at the prospect of driving something new. However, sometimes the paperwork and financial agreements can make the experience more complicated. There's no reason you should be confused, though.

Here at Marshall Chrysler Dodge Jeep Ram, we believe in keeping our customers informed, so that they can get the most out of their purchase. We want you to get on the road in your new vehicle as soon as possible, so keep reading to learn more about how you can prepare for this process.

What to do beforehand.

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

You should also read up 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 this process.

It's also crucial that you to know what you can afford. Keep your credit score in mind so that you can stay within your preferred budget.

What you need to bring with you.

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

1. Proof of income Be 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 history This would include any information about other outstanding loans or other 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 residence Personalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.

4. Proof of insurance Your 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.

Most auto loans will lasts between three to five years. The 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 decent 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 Crittenden, KY, drop by Marshall Chrysler Dodge Jeep Ram at 140 Spears Ln, Crittenden, KY 41030 for a test-drive. We look forward to serving our customers from Lexington and Cincinnati.