You have finally found your dream Honda. Now, you have to go about financing your new ride. With the purchase of a new vehicle being one of the biggest you will make in your lifetime, it’s important to understand the process as a whole. This financing guide looks to explain everything you need to know about this process when you plan on buying from Don Wessel Honda in Springfield, MO.
If you’re not paying cash for your new vehicle, you will have to borrow money to purchase it. This is where car loans come in. When you have a car loan, you must make a monthly payment over the course of a few years to pay it back. This monthly payment can be separated into two parts – the principal amount, which is the actual amount of money you’re borrowing, and the interest, which is the additional cost of the loan.
Car loans also tend to offer flexibility in the amount of time you have to pay back your loan. It can last anywhere from 12 to 72 months, but this term length is something that is important to consider when you set up your loan.
There are many loan options out there for you. You can work with a bank, credit union, or get financing through the car dealership you’re purchasing your new vehicle from. When you shop with Don Wessel Honda, one of the best options is to finance directly through us. Our expert finance team will help you find the best deal for your financial needs – even if you have subpar credit.
When you take out a loan, it’s important to remember that the longer your loan term is, the more money you will pay in the long run. Longer terms help reduce the payments you make each month, but interest will cause you to spend more. A shorter-term loan will typically have you spending less in the long run. This only applies if the financing isn’t offering zero-percent interest. If that’s the case, then the term length doesn’t matter – you will be paying the same amount no matter what.
If you’re ready to kick off the financing process — or just want to learn more — set up a meeting with the team of financial experts here at Don Wessel Honda.