What to Expect When Financing a Vehicle | Greenville SC | Near Spartanburg, Anderson & the Upstate

Buying a car is a fun process, but it can also be confusing at times. The new car smell and different variety of models to choose from are just a few of the exciting aspects of car-buying, but there can also be difficulties when it comes to financing your purchase.

Here at Audi Greenville, we absolutely want your car-buying process to be as pleasant as possible. There's no reason that paperwork and financial agreements should get in the way of your enjoyment. The best way to ensure these don't take you off guard is to stay informed, and that's why we've included this list of what you can expect when you finance a vehicle.

What to do beforehand.

One of the most important things you should do before financing your vehicle is find out the status of your credit score. The better your credit score, the higher chance you have of qualifying for a lower interest rate.

You'll want to do your homework on what sort of interest rates to aim for. Being informed on interest rates that other institutions can provide you will help with the negotiation process. Getting pre-approved can also help you save time during the purchasing process.

Additionally, it's important for you to find out what you can afford. It's helpful to do this with your credit score in mind so that you can stay within your preferred budget.

What you need to bring with you.

There are four primary documents you need to bring with you when purchasing a vehicle.

1. Proof of income
Be sure to bring copies of your pay stubs from last month as well as what you've been paid to-date the past year.

2. Credit and banking history
This would include any information about other outstanding loans or financial obligations you may have, as well as how you've fared in the past financially. These could be mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.

3. Proof of residence

Personalized mail or your mortgage statement are usually enough to provide reasonable proof of residence.

4. Proof of insurance
Your lender will require proof that your insurance company is aware of your newly purchased vehicle and that it's properly insured.

If you aren't financing with the dealership, you will also want to bring along proof of your loan.

Know what determines the loan terms.

A typical auto loan lasts between three to five years. Your lender will run a credit check and ask you questions about your income. Your interest rate will be determined based on how secure the lender perceives your finances to be. If you have a better credit score, manageable debt, a good standing with your insurer and a solid income, you'll most likely qualify for a lower interest rate. If not, you can plan out your monthly payments with a higher interest rate so you can make them as manageable as possible.

If you’d like to purchase a vehicle or want to know more about financing auto loans in Greenville, SC, drop by Audi Greenville at 200 Duvall Drive, Greenville, SC 29607 for a test-drive. We look forward to serving our customers from Spartanburg, Anderson and the Upstate!