If you are a first time car shopper, you may have some questions about the auto financing process. While getting your first car loan may seem daunting, auto financing is actually a great way to improve your credit while receiving assistance towards your purchase of a new Toyota car. To help you prepare for your visit with the Toyota dealership finance department, here is a look at some essential information about getting your first car loan.
Down Payment and Monthly Payments
When you get your first car loan, you will be responsible for both a down payment and monthly payments. Your down payment is a one time deposit towards the purchase of the vehicle. Once you have made your down payment, you will begin making monthly payments in smaller installments. These payments will go towards repaying your car loan.
Your loan payments will be affected by your interest rate. When you are shopping for a car loan at the dealership, it is important to seek out a loan that has a low APR, or Annual Percentage Rate. A low APR indicates that you will get the best deal on your auto loan. Factors such as your credit history and the make and model of your car may also determine your interest rate.
Another factor to consider when you are taking out a car loan is the term of your loan. When you set up your loan, you will be able to determine how long you will take to repay the financing institution. As a general rule, you may want to choose a loan term that is 48 months or longer.
If you are seeking a great car shopping experience in the Baltimore area, look no further than Jerry’s Toyota. Our Toyota dealership carries a terrific inventory of new and certified pre-owned Toyotas, and our parts and collision department will keep your vehicle in peak condition. To set up a test drive of a new Toyota today, call (877) 427-6511.