What to Expect When Financing a Vehicle | Morganton NC | Near Hickory, Asheville & Marion

In the market for you next car? Upgrading your ride can be exciting, but you may have some questions about financing your vehicle. Here at Morganton Honda, we understand and want to help you out. That's why we've created this list of things you can expect when financing car. Keep reading to find out what determines your loan terms and get other tips.

What to do beforehand.

Be sure to check the status of your credit score before financing a vehicle. A better credit score means you have a higher chance of qualifying for a lower interest rate.

Another important thing to find out is what kind of interest rates you should aim for. When you're negotiating, it's helpful to know what interest rates you can get from other institutions. Getting pre-approved can also save time during the buying process.

You'll also need to determine what you can afford. It's helpful to do this with your credit score in mind so that you can stay within your desired budget.

What you need to bring with you.

There are four documents you need to have with you when buying a vehicle.

  1. Proof of income
  2. Make sure to bring copies of your pay stubs from last month as well as what you've been paid to-date the past year.

  3. Credit and banking history
  4. You'll need to give information about other outstanding loans or financial obligations you may have, plus how you've done in the past financially. This could be mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.

  5. Proof of residence
  6. Personalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.

  7. Proof of insurance
  8. 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.

An auto loan normally lasts between three to five years. Your lender will run a credit check and ask you questions about your income. What interest rate you get depends on the how secure your finances appear to the lender's eyes. If you a have manageable debt, a better credit score, high income and a good standing with your insurer, you'll probably qualify for a lower interest rate. If not, you can estimate what your monthly payments will be with a higher interest rate and try to make it as workable as possible.

If you’d like to purchase a vehicle or want to know more about how to finance in Morganton, NC, drop by Morganton Honda at 1600 Burkemont Ave, Morganton, NC 28655 for a test-drive. We look forward to serving our customers from Hickory, Asheville and Marion!