If you have never financed a vehicle before, the process may seem complicated, but it’s actually a lot simpler than you may realize. With a little preparation on your end and our expertise, it can be easy for anyone. The Volvo finance department at Fields Volvo Cars Waukesha wants to make things as easy as possible for all of our customers, and here we go over financing basics.
How Financing Works
Financing involves borrowing money to pay for your car. You will supply a down payment and the rest of the money will come from a lender. On top of the principal — which is the amount of the loan — you will need to pay interest.
How Much Should a Down Payment Be?
The general rule with a car down payment is to put up 20% of the sale price. Not only does this trim quite a bit off your loan, but it also shows a lender that you are committed to the purchase. This will be especially helpful if your credit score is on the lower side. If you have an older vehicle you want to replace, its value can be used towards your down payment.
Figuring Out the Loan Term and Monthly Payment
Once you have the down payment squared away, it’s time to think about the loan term and monthly payment. It’s a smart idea to pick a loan term of around four years, as this can result in reasonable monthly payments. This loan term will also prevent you from making excessive interest payments.
Get All of Your Volvo Financing Questions Answered in Waukesha, WI
If you have questions or concerns about Volvo financing, contact Fields Volvo Cars Waukesha. If you’re ready to get started, you can begin the process now by filling out our online application to get pre-approved for your loan. Contact us today to get started!