What to Expect When Financing a Vehicle | Albertville AL | Near Huntsville & Guntersville

The process of buying your next vehicle can be a thrilling one. Whether it's the new car smell or the variety of options available, there are a lot of exciting components to your purchase. However, buying a car can also be confusing at times, particularly when it comes to financing.

That's why we've provided this list to help you when it comes time to finance your vehicle. At Sand Mountain Toyota, we know that life can be complicated enough without adding things on top, so we want to help ensure that your car-buying process goes as smoothly as possible. Keep reading so that you can know how to prepare for when that time comes!

What to do beforehand.

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

You'll want to do your homework on what interest rate to aim for. Staying 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 closing process.

It's also crucial that you find out what you can afford. Try 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 income-based questions. 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 decent income, you'll most likely qualify for a lower interest rate. If not, you can calculate your monthly payments with a higher interest rate so you can make sure they're as manageable as possible.

If you’d like to purchase a vehicle or want to know more about financing a vehicle in Albertville, AL, drop by Sand Mountain Toyota at 9167 US Highway 431, Albertville, AL 35950 for a test-drive. We look forward to serving our customers from Huntsville and Guntersville!