Steps to Buying A New Car

 


When it’s time to buy a new car or truck, you need to do a lot of research — determining which kind of vehicle suits your needs, whether you need a more robust vehicle for outdoor sports and activities or something that will keep your fuel costs in check as you drive to and from work. Once you’ve settled on a truck, though, it can be disappointing to find out that your credit is not strong enough to buy it. How can you avoid this kind of situation?


The first step is awareness. Did you know that there are powerful tools to help you learn how much credit you could likely receive? The Glenn Polk Ford Credit Estimator gives you all the information you need to make an informed decision about your next vehicle. Below, we also offer some valuable tips on how to improve your credit situation before you buy, and we also explain the ways that good credit can help you.


Let Our Free Credit Estimator Help You Prepare to Buy Your Next Ford


You don’t know if your credit’s good or bad until you take a look. Like so many other things in life, too, problems can get worse if you don’t face them head-on. That’s why we’ve created a free credit estimator tool for our clients. You deserve a chance to learn about your credit, risk-free. With this free credit tool, you can determine roughly where your credit stands and the kind of financing terms you’d receive. 


Your personal credit isn’t the only factor that determines how your financing works. Besides, you must consider the value of your trade-in as well as any additional down payment that you make. Having a valuable car and several thousand dollars to put down can secure you much more favorable terms. Nevertheless, your credit may be strong enough that you can acquire a loan even without a substantial deposit, which means you could be even closer to your next vehicle than you realized.


When you use our auto loan calculator with a trade-in, you can plan your finances accordingly. Learn what kind of interest rates you can expect and how much you’ll need to budget monthly to make it work. We want to help you find the perfect vehicle for you, and this tool can help you prepare in advance. When you couple it with our car value calculator, you’ll know how much money you can expect for your old vehicle.


Some Helpful Advice on How to Maximize Your Credit Before You Buy


As a bank considers financing your loan, they’ll consider several parts of your credit score:


  • On-Time Payments - We can’t stress how important it is to pay your loans and credit cards on time consistently. Banks will often permit additional credit if you’ve shown in the past that you can be trusted to make your payments as scheduled. Without this confidence, banks will be much less likely to loan you money, and if they do, it will be smaller amounts on more expensive terms. 

  • Debt to Income - This is basically how your monthly payments stack up against your gross income. The lower this number, the more favorably banks will consider you. This calculation isn’t based on your total debt, but instead considers the total of minimum monthly payments. Thus, a credit card with $4,000 on it may only be regarded as a $40 monthly payment if the credit card company requires a 1% minimum monthly payment.

  • Available Credit - Similar to your debt to income ratio, banks will also consider how much of your credit you have available. If you can keep that below 10%, banks will find you to be someone who is a safe investment. If you go much above that, they’ll be concerned that you’re spending above your means.


How Good Credit Can Help You When You Buy a New Truck


The better your credit score is, the more willing these banks will trust you with their money. When we turn to those banks for financing, we’ve seen that they offer several benefits to those who approach the deal with good credit:


  • Lower APR - This aspect is one of the most important, as a high APR will mean more money spent on interest, higher monthly payments, and a lower total loan amount. Better auto loan rates, on the other hand, indicate that you can get the same loan for less interest, lower monthly payments, and even pay it back sooner.

  • Increased Credit Limit - A good score can help you arrange financing for any truck on the lot. Since the banks ultimately want to make the loan work, they’re happy to offer more money when they know you’re not likely to default.

  • Flexible Loan Length - If you have a good score, you can quickly secure a loan that lasts anywhere from 12-60 months. When you can choose how long the loan lasts, you have greater control over how large each monthly payment is, which also makes it easier to fit the loan into your budget.


Take advantage of each of these benefits when you secure auto financing at Glenn Polk Ford. See where you stand by using our loan calculator for a car in Gainesville, TX.


Glenn Polk Ford Wants You to Drive the Ford of Your Dreams


Our team is genuinely interested in helping you find the perfect Ford. We’ve helped countless others in Gainesville, TX, get the financing they needed to buy their ideal cars. To help you with this, we’re putting our loan calculator for a car at your disposal. Learn in advance the kind of financing you can secure so that you can prepare to buy a new car.


We’ll give you the best value for your trade-in so that you can secure favorable financing terms on your new vehicle. Explore our selection, use our loan calculator, and then speak to one of our team members for more information regarding how you can get your new vehicle today.

Categories: New Inventory, People
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