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Archive for July, 2013

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Some drivers tend to spend a lot of time making sure they get the lowest price on a vehicle, yet they won’t bother to shop around for the best auto loan. Obtaining a car loan can be stressful at times, but shopping around can save you thousands of dollars in interest payments over the course of your loan. Finding the best car loan depends on factors such as your credit score, the type of car you’re buying and the institution from which you’re receiving the loan. Ultimately, you want to balance a loan’s total cost against a monthly payment you can afford. But if you concentrate only on the monthly payment, you’ll increase the chances that you will end up with a bad deal without even knowing it. At Chapman Honda, finance advisors are available to answer any questions you might have.

When considering loans, the figure to focus on is the annual percentage rate (APR), which varies from day to day. A lower rate can produce significant long- term savings. For example, a three-year, $15,000 loan at 5 percent APR would save you nearly $500 overall when compared with the same loan at 7 percent.

At the Tucson Honda finance department, you will find that to get the best possible interest rate on a car loan it is important to understand the current marketplace for interest rates, including different lender options and financing offers, along with your personal financial situation and its possible limitations. To help qualify and potentially lower your loan payments, cars.com suggests having a 20% down payment for a new car and 10% for a used car.

The term of a loan is another key consideration to keep in mind when shopping for a loan. It can significantly affect both your monthly payment and the total cost of your financing. A shorter term means higher monthly payments but less money paid overall, while long-term loans lengthen the time before your payments begin building equity into the vehicle. It is important to keep the length of the loan as short as you can afford.

To find the best financing option for you, visit a Tucson Honda dealer.