Know the Facts Before Choosing Your Car Financing

When you decide to purchase a new or used car, it's a good idea to know the financing process. And we're here to help!

First, you should know that the financing will be determined by your credit score. Are you aware of your score? A low score will mean a higher annual percentage rate (APR) and that's going to affect your monthly payment, as well as the cost of your loan. Many times, a larger down payment is used to offset any negatives, which also builds equity in the car. However, the down payment is determined by the creditor. Typically, the creditor will be a bank or finance company who decides to finance your used car. You can also choose a co-signer. With a co-signer, the creditor uses their credit score and holds that person responsible for the loan terms.

Be sure to choose Doug Smith Kia for your car financing! We're located in American Fork, UT.



Categories: Finance