What Are The Financing Options When Buying A Car?
The best way to pay for a car purchase is with cash, but when this is not an option, then finance should be arranged before you close the deal on the car of your choice.
Zero percent financing is used by dealers as a way of helping them dispose of slow moving inventory. Buyers that have an excellent credit rating and are willing to arrange financing through the manufacturer will find this an ideal way to save considerable money if it so happens the Chevy in Naperville is available under the program. Manufactures use incentives as need be, they put them up and take them down to suit the market.
Buying your new Chevy in Naperville is a separate transaction from arranging financing. When you are deciding on the car you will be focusing on one set of details, financing has its own details to work through. It is always a good idea to keep these transactions separate; in this way you will know the true cost of money.
Pre-approved financing in the eyes of the dealer is the same as cash. For those that have no arranged financing in advance the dealer can arrange it but there may be some differences. The bank may have offered the loan at slightly lower interest; there may be other incentives as well. If you calculate the true cash difference, regardless of the interest rate, it may not be all that big and the dealer can often add an extra option that you wanted at no cost as a way to offset the difference.
Using the equity in your home as collateral for a loan is also a good way of getting money for the purchase of a Chevy in Naperville. The rates on home equity loans are quite low and, unlike other forms of financing, the interest might be tax deductable. Although this is an available way to get money for the purchase of a car it is not a wise choice if your income stream is not predictable.
Before you begin looking for financing, first check your credit rating. If you find you have an A rating you will not have any problem in getting a loan at the most attractive terms. B and C rated borrowers are not necessarily a bad risk but they may need a co-signer for a loan or a larger down payment. This is called “sub-prime” financing; the interest rate may be quite high; this is where the dealer can help considerably. Chevy dealers have a multitude of sources of finance and unlike a bank, the dealer can shop around on your behalf, more often than not the dealer will find a loan that is acceptable to you.
If you are looking for a new or used Chevy in Naperville then you are invited to visit the showroom of Hawk Chevrolet Cadillac of Joliet. You will find a large inventory of vehicles ready for you to drive home.
