Buying a new vehicle is an exciting experience. Improved technology, a smoother ride and the new car smell are just a few of the things that make this process so enjoyable. However, when it comes to actually buying the vehicle, there are a few components that may seem intimidating at first.
That's why we've provided this list of things you can expect when you finance your vehicle. With the proper information and knowledge, there's no reason the car-buying process should be anything other than pleasant. Here at Arrowhead Honda, that's our main goal when it comes to customer experience.
It's crucial to find out the status of your credit score before financing a vehicle. The better your credit score, the higher chance you'll have of qualifying for lower interest rates.
It's also important to do your homework on what sort of interest rates to look for. Being informed on interest rates that other financial institutions can give you will help you out when negotiating rates. Getting pre-approved can also help save time during the purchasing process.
Additionally, it's important to find out what you can afford. Try to do this with your credit score in mind so that you don't exceed your preferred budget.
There are four primary documents you need to bring with you when purchasing a vehicle.
1. Proof of income
Be sure to bring copies of your pay stubs from last month as well as what you've been paid to-date the past year.
2. Credit and banking history
This would include any information about other outstanding loans or financial obligations you may have, as well as how you've fared in the past financially. These could be mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.
3. Proof of residence
Personalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.
4. Proof of insurance
Your lender will require proof that your insurance company is aware of your newly purchased vehicle and that it's properly insured.
If you aren't financing with the dealership, you will also want to bring along proof of your loan.
Typical auto loans last between three to five years. Your lender will run a credit check and ask you questions regarding your income. The interest rate you're given will be determined based on how secure the lender perceives your finances to be. If you have a decent credit score, manageable debt, a good standing with your insurer and a higher income, you'll most likely qualify for a better interest rate. If not, you can plan what your monthly payments will be with a higher interest rate so you can make it as manageable as possible.
If you're interested in purchasing a vehicle or want to know more about how to finance in Peoria, AZ, drop by Arrowhead Honda at 8380 W Bell Road, Peoria, AZ 85382 for a test-drive. We look forward to serving our customers from Phoenix, Glendale and Sun City!