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Becker Autos & Trailers On Point

KSAL Staff - September 26, 2016 12:03 pm

Start off of the right foot when financing

Hi, I’m Lydia Housh with Becker Autos & Trailers of Beloit!  In this blog as helpful tips when financing your new vehicle or camper purchase. If you have any more questions or want to see what we can offer you at Becker Autos & Trailers, please feel free to call/text me at 785-534-1227 or shoot me an email at beckerautos@nckcn.com.

So you’re approved for financing, now what?

What is your interest rate?

So you’re approved for financing on your loan.  And your payment sounds good, but what is your APR? Your annual percentage rate you pay for interest will depend mostly on your credit.  If you have good credit, you should get a better rate… bad or no credit, you will probably have a higher rate. What’s a good rate?  Often times with good credit average rates can range from 2.99%-7% depending on your purchase.  With bad credit you may get offered rates at 25% or above!  You need to watch this as it effects what you pay for your purchase overall.  Don’t expect to pay a 25% interest rate and finance 100% and be in a good place to be able to trade your vehicle within the next 2 years.  It probably won’t happen as a lot of your payment will be going towards interest.

How long are you financing out?

What is the term you are looking for on your loan?  On several vehicles you can finance out 7 years and on campers 12 years or more!  Make sure if you decide to finance out for that amount of time you are considering how long you will keep it.  If you finance out a car for 7 years and think you are going to sell it in 1, you may be upside down when you go to get rid of it and make the process a little more difficult.  Do they offer a better interest rate if you chose a shorter term?  Can you pay it off early without penalty? If you overpay on your loan monthly, all of the amount over what is do will be applied towards premium, and in turn help you to pay less interest and pay it off faster!

Do I need the service agreement, GAP or other options?

Often times after you have agreed to purchase your car there are other options you can add into your loan to up the value of your vehicle or to secure your investment.

Warranty When considering whether to buy a warranty you should look and see if what you are purchasing already has a factory warranty!  If it does, how much is remaining, what is still covered?  Can you come up with money when repairs are needed, or will that put you in a tight spot? What is the average cost of repairs associated with what you are buying?  Sometimes a warranty is a smart investment!

GAP If you have financed to the max of what your vehicle or camper is worth, rolled in any negative equity, put a lot of miles on in a year or financed out a long term.. you should look into the GAP protection.  What that means if your purchase ever gets totaled and insurance values it at and pays out less than what you have left on your loan, the GAP protection would make sure your loan is paid off, your deductible is paid and you don’t owe on blue sky!  Take into consideration where you are when you start the loan and cost of the protection.  Often times your insurance companies also offer this protection at a monthly rate.

Other There are several other upgrades often offered at dealerships when financing.  There are extended service contracts, where you pay in advance for your regular maintenance to be done.  There is an undercoating option and protection to add on your purchase, paint warranties, key coverages and more.  You need to really decide if those are something that would be valuable enough to put in your loan.  Can you pay out of pocket for your scheduled maintenance and is it even going to be feasible to take it into the location where you bought it to get it done?  Do you really do more highway driving or have a higher risk at rock chips and the undercoating on your car being a concern than the average driver? Really look at what is offered to you and decide if it is something you truly need or if it worth adding into your loan.

Bottom line is, don’t start upside down!  Be knowledgeable! Know what you paid, know your interest rate, know that you made a good deal!

Any other specific questions or anything else I can help with, feel free to give me a call or text me at 785-534-1227!  Also you can email me at beckerautos@nckcn.com.

Don’t forget here at Becker Autos & Trailers we have over 60 vehicles, 35 campers and 100 trailers on the lot and we’re here to help find the ones for you!  Open House and show special pricing on now! You can check out our website at beckerautos.com!

(Direct Inventory link: http://www.beckerautos.com/newandusedcars.aspx?clearall=1 )


Thanks for reading!

Lydia Housh

“Always makin’ deals on things with wheels”

Becker Autos & Trailers in Beloit


City of Salina