When you’ve found that perfect new car, you should start to give some thought on how you’re going to pay for the car. Financing this new car is a great option with Vicksburg Chrysler Dodge Jeep® RAM and our car finance department near Battle Creek, MI. Whether your looking at a new Dodge Challenger or a Dodge Journey, there are finance options for you. Let’s look at what new car loans consists of and what you should know when you get one!
The ultimate basics of what car loan is that you are borrowing money from a lender and paying that, and the interest, back over time. Although some car manufacturers may offer 0% financing depending on your qualifications. The amount that you finance is what as known as the “loan principal”.
You can find loan calculators online that will help you learn more about how much a loan and how the interest affects your payments over time. For example, a $20,000 loan at 5% interest over 60 months will end up costing you $22,600. While that same loan at a 2.9% interest rate will end up saving you $1,140 over the life of the loan. That is a significant difference in what you end up paying for your car!
60 months, or 5 years is a pretty standard loan term, or in other words the length of the loan. This will allow you to spread out your payments and pay a lower amount each month. Some manufacturers are even offering 8 year loans if you wanted to lower your monthly payment even more. But you need to make sure you understand that switching to an 8 year loan will up the amount of interest you’ll pay on your car since you aren’t paying it off as quickly.
In the end, you’ll want o make sure and talk with one of our finance specialists in our car finance department. They are highly trained to look at the car you want, your credit score, and what you can afford to make sure you get the best deal on your loan.
Be sure and step in and find the Dodge, Chrysler or Jeep vehicle of your dreams at our RAM dealership near Kalamazoo, MI. We have the vehicle you are looking for and the friendly staff to make sure you get the car you want.