GMC dealers in Gurnee know that finding the right car loan and securing the best auto financing for your budget can be a challenge. It’s important to balance the total cost of your loan against a monthly payment that’s truly affordable for your lifestyle. While you continue your search for the perfect vehicle, keep these Gurnee auto financing tips in mind:
- Pay extra attention to a loan’s total cost.
During your auto financing
journey, make sure you keep an eye on a few key elements of your loan’s total cost. The most important factor to keep in mind is the annual percentage rate (APR). A lower APR can help you save some serious money long-term. For example, a three year $15,000 loan at 5% APR will save you nearly $500 compared to the same loan at 7% APR.
You’ll also want to consider the term (or length) of the loan since a shorter loan term translates into higher monthly payments but less money paid overall. To keep costs down, it’s best to opt for the shortest loan length possible.
- Know your options.
There are many different places you can go to shop for vehicle financing
. The biggest lenders are, of course, banks like Bank of America, Capital One and Chase. The other major option comes from “captive” finance companies which belong to automakers, like Ford Motor Credit, Honda Finance and Toyota Financial Services. You might be surprised to learn that captive finance companies are often the better option for GMC auto financing in Gurnee since the automaker itself is subsidizing the loan.
With their restrictive, very conservative loan policies, banks typically only cater to those with stellar credit standing. When you choose to arrange vehicle financing through automakers, you’re guaranteed a certain level of convenience and an increased likelihood that you’ll be able to negotiate the dealer’s initial quote down to something more comfortable for your budget.
- Get pre-approved.
If you can get pre-approved for financing
before you head to the dealership to purchase your car, you’ll enjoy the advantage of knowing exactly what you can afford. You’ll be able to enter the deal for your new car with the knowledge that you can cover the purchase without an issue.
To get pre-approval for financing, make sure you do your research to find out what your desired car will cost, including taxes and fees. Deduct the down payment to see how much you actually need to borrow from your lender.
Ready to finance a Buick in Gurnee? There’s no one better to ask advice from than your favorite Gurnee Buick dealer: Anthony Buick GMC. We’d be happy to answer any questions you might have to help you drive off into the sunset in the Buick of your dreams today.