Generally, most drivers prefer the process of browsing new car models and going for test drives to applying for car loans since financing can often become tricky and confusing. However, here at Green Mazda, you’ll be set up for success thanks to our easy online tools and helpful team of finance experts. We’ll be happy to walk you through how paying off car loans works and how to find the right car loan for you.
How Credit Affects Car Loans
Your credit score, which is essentially a grade for how well you’ve paid off debt in the past, plays a significant role in paying off loans. Generally, higher credit scores earn low rates and quick loan approvals. However, we can still help get your loan approved at a good rate even if you have low credit.
Down Payment
Another factor to consider is your down payment. This is the amount you will pay upfront before monthly payments are considered. The more you pay down, the lower your monthly payments will be.
Term
When dealing with car loans, the term refers to how long you will be making monthly payments. Some drivers choose short terms as low as 12 months. However, you can extend payments out as long as 84 months.
Interest Rate
The interest rate is how your lender makes money from the loan. Interest rates will be higher if the loan is considered riskier, which is why it’s a bit more difficult to get a low rate with a bad credit history. Longer terms are also considered riskier loans, which means extending payments may result in higher rates.
No matter what, our Mazda finance team will work hard to help you secure your loan with the best possible rate for you. Contact our Springfield Mazda dealership today to learn more and to get started!
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