Getting approved for financing to purchase a new or used vehicle can be a little intimidating. Many people hesitate because they have questions and are afraid to fill out an application. We have provided answers to some of the most common questions to give you the confidence to take the next step.
Will I need a large down payment to buy a car?
- Many times we can help get you financed without a down payment at all. In other situations, your current vehicle may be the only down payment needed. Other options exist, even if you do not have any money available for a down payment, nor a trade-in.
What is the difference between going through a bank or a dealer?
- A dealership like Sherwood Dodge works with many lenders, so often we can get you the best terms and rates for your situation.
What kind of rates can I expect if I need a bad credit car loan?
- Standard interest rates are around 4.9%. If a person has a low credit score, he or she may have a higher risk which translates into a higher interest rate. While it can range between 6% and 20%, we may be able to obtain more favourable rates for you. Many times, your credit is not as bad as you think it is. Once you obtain a loan and make payments on time for 12 months, we can obtain a new loan with a lower interest rate.
How will applying for a car loan affect my credit?
- Any time a lender pulls your credit report for a loan, it results in a hard inquiry that can lower your credit score. That is why it is recommended not to shop around at too many dealerships. We will pull your credit history and review it. Then, we provide recommendations to you, but you make the final decision before we submit the request to any lenders.
- The good news is that once you are approved for a loan and you make a few payments on time, it will have a positive impact on your credit. You may see your credit score rise over time as you continue to make timely payments. When you are ready to finance another vehicle, you will be able to obtain traditional financing with more favourable terms.
Can you guarantee an approval for a car loan?
- Because we have a large network of lenders, we can find financing most of the time. The guaranteed approval is based upon the condition of the borrower’s ability to find a co-signer or provide the required down payment. Vehicle options may have limitations such as less than five years old with a price between $7,500 and $12,000 with fewer than 100,000 km. In many instances, these conditions are not required to obtain financing.
Regardless of your situation, the finance team at Sherwood Dodge can help you buy your next car. We offer a straightforward process and work with you to get the approval you need at the best terms. Don’t hesitate to contact us with questions or to fill out an application. We work hard to make financing easy for you.