When you decide to purchase a a quality pre-owned vehicles there are many factors that will come into play.
The amount of the loan, the interest rate and the term you qualify for will all be determined by your past credit history.
Having a good understanding of your credit history can help you decide which options will work best for you. At Prestige Auto Sales we can help you learn more about your credit score, history and work with you and the banks to overcome these obstacles. This is providing there is some past credit history. If not, we've included a section below with the information you will need to know how to get financing at Prestige.
1. On a Scale of 1-10 - How would you rate your credit? Having a realistic idea of your past credit history is helpful for many reasons. Many banks place limitations on the type of car you can purchase- depending upon your credit, you may qualify for one car but not another. It will help save you the headache of falling in love with a car only to have your hopes dashed.
In most cases WE CAN help you rebuild your credit! We'll show you many cars that will work for you and the banks, and go from there. It's a fun, easy process getting to pick out your next car. When you visit Prestige we can also show you your credit report and score. We will work with you to explain away the negatives on your credit history and focus on the positives so that we can negotiate on your behalf with the banks.
There are four common pieces of information on your credit report. These include your Personal Information, public records and inquiries and credit information.
Personal information: Things such as your first and last name, your current address, phone number, your social security number and current/past places of employment. Credit information: This is the bulk of your credit history, and typically carries the most weight. If your credit is listed as "paid as agreed" it will stay on your credit report for years, not leaving until 7 years after the last date of activity. If you have some negative or derogatory marks on your credit, they will stay there for seven years from the last date it was reported.
Auto Loans, Mortgate Loans and Credit Cards can all fall into this category. It's also possible that other creditors could report non-payment here as well. Public information: If you've had a bankruptcy, unpaid child support, or credit card charges off's they will appear here. This can also include court judgments against you and these marks can stay on your credit for up to 10 years! Inquiries: This section describes everyone who has pulled a copy of your credit report. In some instances these marks can lower your credit each time an inquiry is made, however most banks do offer you the opportunity to try and receive a competitive rate. See our Finance Department at Cocoa Hyundai to see the best course of action.
There are other, even more important factors that come into play as well. If you have poor credit, the following will be even more important than your credit score.
2 Try to be flexable within your budget, but be sure to have an idea of what you can afford before you go shop. Most experts feel that your car payment and related expenses should not exceed 25% of your net monthly income. Be sure to budget accordingly.
3 Have your down payment amount set in advance. Your deposit can be made up of cash, check or even credit cards. If you have a low interest credit card, paying down part of the loan may save you some money over the long term.
Those with less than perfect credit will often be required to put some cash down. This is the banks way of "sharing the risk" with you. The good news is that when you pay off your current car on time, you should be in a much better position the second time around.
4 If you have a trade–in, estimate what your trade’s equity is. This is considered the same as down payment if you don’t have a balance on it. If there is a negative balance, it has to be subtracted from the value of the car to determine it's real value. Websites like Edmunds.com will help you get an idea of the value of your trade before you stop in at Prestige.
However, if you go to one of these websites realize you need to look at “:trade-in” value not “book value” which is used to determine how much the bank will usually finance on a unit. Also remember, that in the end websites such as Edmunds, KBB, and NADA only offer opinions, and their opinions can vary a great deal. The market value of your car may be lower or higher then what is printed on these websites.
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