When you are ready to finance your Chevy in Fairmont, there are things you need to know before you put any money down. Financing your car means taking out a loan to help pay for your car. When you want to take out a loan on your car, you will need to work directly with the bank.
The contract you sign with the car dealership in order to buy the car will be the first step to getting your car. The dealership will state that the loan you have taken out with the bank will go to the direct lender so you can pay for it. Before signing any contracts, however, go over these questions with your bank or credit union.
What are the Terms of the Loan?
When you take out a loan, you must repay it in monthly increments. This monthly amount will change depending on the terms of the loan. The terms of the loan will state how long you have to repay the money, which is usually two to three years, but can be up to seven years. Within this timeframe, the total amount is split into equal, monthly payments, which will span the term of the loan.
If you want to pay off your loan as quick as possible, you will want to look for a loan with a short term, usually two or three years long. If you are more comfortable making smaller monthly payments, you should discuss a longer loan term. Make sure you know the terms of your loan before signing anything.
What is the Interest Rate?
Depending on your credit score, the annual percentage rate (APR) you pay can fluctuate. This interest rate is added to the part of your loan balance that has not been paid yet. It will continue to accumulate until the entire loan has been paid off. This means that you are really paying more than your loan says. If you know what the interest rate is upfront, you can plan for future payments.
Will the Interest Rate be Variable or Fixed?
Once you find out what the interest rate will be on your car, you should find out if it is a variable or fixed interest rate. A variable interest rate means that the payments you will need to make including the interest rate will fluctuate. A fixed interest rate, however, is stable and will not change from month to month. This means that it is much easier to plan for payments instead of worrying if you will have enough money each month.
Contact Hawk Chevrolet Cadillac of Joliet when you go to buy a Chevy in Fairmont. They will be able to provide all of the information you need and more.