What to Expect When Financing a Vehicle
What to Expect When Financing a Vehicle in York, PA
If you’re ready to finance your new Toyota model, congratulations! Believe it or not, the hard part is behind you. Deciding on the right model, trim level, and other important factors can take time. But there’s still one step to take before completing the process. While it may seem overwhelming at first, financing your vehicle doesn’t have to be complicated, especially if you take time to prepare ahead of time. Here at Toyota of York, our main priority is to give you a top-tier driving experience, which is why we outline some helpful information below to get you ready for financing your new Toyota or pre-owned vehicle. Keep reading to learn more!
What do I need to do beforehand?
Before purchasing a new Toyota model or pre-owned vehicle, ask yourself these three questions:
1. What’s my credit score?
Higher scores typically lead to lower interest rates on your loans.
2. What are the interest rates lenders are offering?
Do your homework and look into several different loan providers before starting the financing process. You’ll also be in a better position if you get pre-approved beforehand.
3. What can I afford?
If you know your credit score and have a good idea of what your interest rate will be, you can use our online payment calculator to determine your monthly payment amount.
What documents do I need to bring?
Once you decide what vehicle you want to buy or lease, there are four important documents you should bring with you to the finance department .
1. Proof of income.
We’ll need copies of your most recent pay stubs, as well as a summary of what you’ve been paid to date in the past year.
2. Credit and banking history.
This includes any information about your current financial obligations or other outstanding loans. Mortgage or lease agreements, credit card statements, bank statements or alimony and child support records count towards your history.
3. Proof of residence.
A mortgage statement or any personalized mail will satisfy this requirement.
4. Proof of insurance.
Bring along a valid insurance card so that we can verify that your current vehicle is insured. Once this is verified you can transfer the insurance over to your new car.
If you decide to use another lender for financing, make sure you bring proof of your approved loan as well.
What determines my loan terms?
Your loan terms depend on a variety of factors, from credit history and credit score to current income and debt, as well as your standing with your insurer. Also, your finance application will play a significant role in determining the terms of your loan. When we process your application, we’ll run a credit check and ask income-related questions to get a better idea of your overall “credit-worthiness.” And don’t forget — the higher your credit score, the better your interest rate will be. If you don’t feel so great about your credit score, though, that doesn’t have to keep you from driving home in a sweet new ride! Our finance experts work with all sorts of financial backgrounds, and would be happy to discuss your options with you.
Let’s talk. If you’d like to purchase a vehicle or want to know more about how to finance it in York, PA, drop by Toyota of York at 1885 Whiteford Road, York, PA 17402 for a test drive. We look forward to serving our customers from Hanover, Lancaster and Elizabethtown.