Ever wonder where that quoted auto loan interest rate comes from? No, it doesn’t fall from the sky, nor is it pulled out of a magician’s top hat; the interest rate you receive is determined primarily by a few factors:
- Your choice in lender/dealership
- The make, model, and year of vehicle you intend to finance
- The length and terms of your loan
- Your credit score
Are you buying a brand-new Chevy car packed with all the bells and whistles, or is a late-model used coupe more in your wheelhouse? Do you feel comfortable paying more monthly for shorter loan-term lengths? Have you had past credit problems you wish would go poof?
No matter your preferences, budget, or previous financial issues, there are a number of ways to obtain low-interest auto financing on your next vehicle.
Know Your Numbers (Credit Scores & Budget)
Before you get giddy about purchasing a new car, it’s important to know where you stand financially. What are you comfortable spending per month? Experts will advise that consumers spend no more than 20% of their monthly income on their auto loans and payments. Can you swing that budget? If so, get pre-approved and see how your budget aligns with our offered financing rates.
Another number you should know is your credit/FICO score, which can be obtained in two ways.
- Free copies of your credit report from the three major agencies: Equifax, Experian, and TransUnion. Federal laws allow you to acquire your credit score once per year from each of these agencies. Find your report at com.
- Purchased credit summaries. These summaries offer a more in-depth look at your creditworthiness aside from just your FICO score.
If you plan on purchasing a new or used car in the near future, refrain from accumulating new debt, credit accounts, or other loans that might affect your current credit history. If you must, it’s best to apply for all necessary loans in the same two-week period, as that would count as a single inquiry into your creditworthiness.
Researching loans and vehicles shouldn’t begin until you’ve acquired these numbers. While we’re certain that we offer highly competitive if not the best auto financing rates in Kansas City, we respect your decision to validate our claims before partnering with us.
Use the Payment Calculators & Other Resources
For a better grasp on your financial and budgetary restrictions when buying a car, use our payment calculator. Entering your down payment, estimated APR, vehicle price, and term length will help you determine your monthly estimated monthly payments. Within seconds, you’ll have data to create a budget properly.
If you have the opportunity to trade in your old vehicle for a newer one, do it! Some dealerships, including McCarthy Chevrolet, will offer premium trade-in compensation for your used car. Learn more about our Kansas City car dealership’s exchange program, and when you’re ready to part ways with your old vehicle, use our online form to receive your complimentary trade-in appraisal.
Resources that are rarely forgotten about are new car specials and other incentives. At our McCarthy dealerships, we have great offers on new Chevy cars, trucks, and SUVs, as well as used vehicles of many makes and models.
Investigate Your Financier
Just like you would for your child’s nanny or a prospective employer, you should always perform your due diligence and investigate potential lenders. For a consensus on a lender, bank, or dealership’s quality of service, search the Better Business Bureau. Read consumer-authored online reviews on Facebook, Twitter, Yelp, and Google. If you live in Kansas City, the state’s Office of the State Bank Commissioner has a handy online tool for finding valid loan financiers. Poor BBB ratings, reviews, and invalid statuses could be early warnings that you should continue shopping around.
Having done such research, you’ll feel more comfortable putting your John Hancock next to the “X” when finalizing your auto loan.
Shop for a Loan First & Get Instant Credit Approval
Many people shop for the vehicle first, but it’s in your best interest to find a lender that offers the best loan deals before choosing your wheels. Negotiating your loan terms in percentages will give you a leg up when you do finally decide on your car.
One of the simplest ways to start finding an ideal loan is to get pre-approved. At McCarthy Chevrolet, we provide instant credit approval. Once you apply, you’ll receive an immediate email verifying your credit approval for a new car loan. When you’re ready to get your new keys, print out and bring your certificate into our Kansas City Chevy dealership as proof.
Best yet, submitting our pre-approval form won’t affect your credit score in the slightest! There’s no requirement to submit your social security number, date of birth, or any other personal information other than your name, address, and contact details. Our pre-approval tool is one of the most robust and simplest to use!
Read the Terms & Conditions
We are up-front and honest with all of our customers, but we also understand that buying a car is a big investment and one not to be taken lightly. Read and understand your loan paperwork before signing. It’s your right to understand binding agreements, after all. Here are some items you might look out for in your contract:
- Variable APRs – If the highest possible payment isn’t within your budget, let your lender know. If you buy from McCarthy, we’ll do our best to find a better loan or alternate vehicle.
- Penalties & Fees – Penalties include late payments, prepayment fees, costs to void remaining term lengths and more.
- Mandatory Binding Agreements – Any agreement that takes away your right to legal recourse or get out of the loan.
- Other Promises – Make sure any promised rates, bonuses, features, or add-ons are included in your contract. If our sales team promises to deliver on something, we’ll stand by it.
Don’t sign unless you’re pleased with the “fine print” on your contract.
Ready to Finance Your Next Car?
Once you’ve determined your credit numbers, finances, and have been pre-approved for a loan, start searching for your new car. We’re confident that you’ll discover that our new and used car dealership near Kansas City has some of the best rates and selection of vehicles in the area. Give McCarthy Chevrolet a call at 913-712-9350 to start shopping for a low-interest auto loan today!