Finance 101
Why Do I Have to Finance a Vehicle?
Unless you have enough cash or equivalents lying around, you will need to take on some longer term financing. Buying a car is expensive so most people aren't in the position to walk into a dealership and put down $25,000 on a new one. Thankfully we have a solution. At theDestination Auto Group our finance specialists have developed a cohesive network of local lenders who will lend money at very reasonable rates.
Will you Finance the Down Payment Too?
No, the down payment is in place to ensure that you have enough money to purchase the vehicle. In some cases we may waive the down payment if your credit score is high enough; however, you will still have to cover the amount in monthly payments anyway. We will also accept your vehicle as a trade-in to cover some or all of the down payment, so fill in our online Trade-In Appraisal form and we will get back to you as soon as we have determined a reasonable price for your vehicle. You will be surprised at how much equity you have stored in it!
How is my Financing Rate Determined?
The cost of financing is based on a number of factors. The most important considerations that the lender makes are the length of the loan, the interest rate, how much the lendee borrows, and credit history. There are other considerations too, but if you have a good idea about these 4 then you what to expect. Making a bigger down payment will reduce the financing rate, so the more you can put down the better. If you should come into money the balance of the loan can be paid off at any time.
How is a Monthly Lease Cost Determined?
It is difficult to determine exactly how much the monthly lease rate should be over the term of the agreement, but our finance specialists have determined that 3 things primarily drive the cost.
Actual Cost refers to the actual purchase price of the vehicle. The sticker price is adjusted for things like the down payment, trade-in discount, and any other incentives, while additional fees for documentation and shipping are added back on.
Residual/scrap value is the value remaining on the vehicle at the end of the term. This is calculated by subtracting the expected depreciation from the actual cost of the vehicle
Cost of Borrowing is how much it costs to borrow any required money over the term of the lease
If you have any questions please Contact Us and we will get back to you as soon as possible.
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