If you have never financed a car before, the process may seem confusing. So, our Honda financial services department is going to answer some of your most common questions.
What is Financing?
If you don’t have the all the cash you need to buy a car, financing is likely your best option. This involves putting up some money for the vehicle – the down payment – and then taking out a loan for the rest. You will then pay off this loan with monthly payments.
How Long is a Car Loan?
You get to decide how long you need to pay back the lender. This could be as short as 12 months or as long as 84 months. Most people generally go with a loan term somewhere between 48 and 60 months.
Should I Choose a Shorter Loan Term?
If you want to pay off the loan quickly, a shorter loan term will help you do it. There is a big caveat, however: You will have larger monthly payments.
The downside to having a very long loan term is that you will pay more in interest overall, even if your monthly payments are lower. This is why somewhere in the middle could be your best bet.
Will My Credit Score Affect My Loan?
While it is true that your credit score will be examined, even if it on the lower side, this shouldn’t prevent you from getting a loan. However, it may mean that your interest rate will be higher.
How Can I Start the Financing Process?
Getting the ball rolling with financing is easy. All you have to do is fill out our online form which will get you pre-approved for your loan. At that point, someone from our financing center will be in touch to go over the details.
If you have any other financing questions, contact Tom Wood Honda. You can also come down to our Anderson dealership to speak to a financing professional.
