Start with the total cost, not only the payment
A monthly payment is only one part of a financing agreement. Consider the vehicle price, down payment, taxes, title and registration costs, interest, loan length, insurance, fuel, and maintenance. A longer term may lower the monthly payment while increasing the total amount paid.
Know the basic terms
- Amount financed: the balance borrowed after the down payment and any included costs.
- Interest rate: the cost of borrowing, expressed as a percentage.
- Loan term: how long the agreement lasts.
- Total of payments: the amount paid over the life of the loan.
Ask what is included
Before signing, ask whether taxes, fees, optional products, or service contracts are included in the amount financed. Review the written agreement and ask questions about anything you do not understand.
Prepare before applying
Have a realistic budget in mind and be ready to provide the information the lender or dealership requests. Do not assume approval, rate, or payment amount until the lender has reviewed your application and provided terms.
You can begin with the HRM Auto online credit application, then discuss the available options for the vehicle you are considering.
Compare the vehicle and the financing together
A financing decision should follow a review of the specific vehicle, title status, available history, and condition. For a broader shopping process, read Buying a Used Car in Macon, Georgia and Questions to Ask Before Buying a Used Car.