When drivers in Huntsville, Florence, and Cullman, Alabama decide to finance a used car with Century Automotive, they can expect to receive an abundance of support throughout the entire process. In fact, that kind of support begins before you even visit our dealership.
The information that we've provided for you below is an example of this. While you're reading along, you'll have the opportunity to learn about key terms having to do with the financing process, maintaining a healthy credit score, and the kind of experience that we have waiting for you here. Dive in to get started.
ÂImportant Financing Terms to Remember
Here's a list of basic terminology to keep in mind while you're beginning your used car-buying journey:
- Car Loan. When you enter an agreement with a lender to borrow a specified amount of money in order to purchase a vehicle, this is the name for the agreement itself. The loan states that the lender agrees to lend you the money, while you agree to pay it back over a certain period of time.
- Down Payment. The amount of money that is paid up front is referred to as the down payment. The size of this payment is important because what you will be paying back throughout the term of the loan makes up the difference between the down payment and the cost of the vehicle. As a result, the down payment determines the size of the loan, how much the monthly payments will be, and how long it will take to pay the loan off.
- Interest. The interest is what the lender charges you for providing you with the loan.
Credit Score Basics
Your credit score determines what your interest rate is going to be. Accordingly, you're going to want to keep your score as high as possible. Here are a few of the things you can do to maintain a healthy credit score:
- Pay your bills in a timely manner. Paying your bills on time shows that you're dependable.
- Pay off debts. When all of your debt is paid off and your credit card balances are low, you're proving that you can manage your credit.
- Keep any unused credit cards open. If you have credit cards that you're not using, be sure not to close them. You will have more available credit and your credit limit will be extended.
Meet Our Finance Specialists
When you take your seat inside the finance department, you're going to have the opportunity to work closely with one of our knowledgeable professionals. This individual will take the time to walk you through each of your options and answer whatever questions you might have. Their goal is to make sure you have all the information you need to choose the option that best suits your budget. Â
Schedule a Test Drive with us Today
You've just reviewed some of the basics when it comes to BMW used car financing. If you have any questions about any of the above information, you're welcome to reach out to a member of our team here at Century Automotive via email or phone call.
If you call Cullman, Florence, or Huntsville, AL, home, feel free to stop by or contact us today to take a test drive.
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