What to Expect When Financing a Vehicle | Dry Ridge KY | Near Florence, Cincinnati and Lexington

Once you've chosen your car and are preparing to buy it, the experience can be exhilarating. However, there are also some complicated steps ahead of you. There's no reason the process shouldn't go smoothly, though.

That's why we've put together a list of things you can expect when preparing to finance your vehicle. There's no reason for your enjoyment to be ruined by paperwork and financial agreements. Keep reading to ensure you're prepared for this step in the process.

What to do beforehand.

One of the first things you should do before financing your vehicle is find out the status of your credit score. The better your credit score, the higher chance you have of qualifying for a lower interest rate.

You should also research what sort of interest rates to aim for. Being informed on interest rates that other institutions can provide you will help with the negotiation process. Getting pre-approved can also help you save time during this process.

Additionally, it's important for you to know what you can afford. Keep your credit score in mind so that you can stay within your preferred budget.

What you need to bring with you.

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 includes 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.

Know what determines the loan terms.

A typical auto loan lasts for three to five years. Your lender will run a credit check and ask you income-based questions. Your interest rate 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 high income, you'll likely qualify for a lower interest rate. If not, you can plan what your monthly payments will be with a higher interest rate and try to make it as manageable as possible.

If you’d like to purchase a vehicle or want to know more about how to finance in Dry Ridge, KY, drop by Marshall Dry Ridge Toyota at 9 Taft Highway, Dry Ridge, KY 41035 for a test-drive. We look forward to serving our customers from Florence, Cincinnati and Lexington.

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