What to Expect When Financing a Vehicle

What to Expect When Financing a Vehicle in York, PA

Is it time to purchase a new car, truck or SUV? There’s no need to allow the enormity of financing a vehicle to get in the way of enjoying your new ride! We’ve put together a list of necessities, as it can be beneficial to learn as much as possible beforehand to avoid any confusion while filling out the paperwork for financing.

What to do beforehand.

First, you need to find out your credit score before you apply for a loan. That is perhaps one of the most important steps. If you have a higher credit score, you’re more likely to qualify for a better interest rate.

It’s good to do your homework on what sort of interest rates to aim for. Learning about the various rates that other lenders may provide will assist you with the negotiation process, and getting pre-approved can also help you save time.

You should also consider your budget, and keep your credit score in mind when figuring out your budget.

What you need to bring with you.

  • Proof of income, such as pay stubs from last month as well as what you’ve been paid to-date the past year.
  • Credit and banking history, including information about other outstanding loans or financial obligations you have, such as mortgage or lease agreements, alimony or child support payments, credit card statements or bank statements.
  • Proof of residence, such as personalized mail or your mortgage statement
  • Proof of insurance

Know what determines the loan terms.

Most automotive loans last between three and five years. There are multiple factors that go into determining the loan terms, and your lender will run a credit check and ask income-based questions. This will help your lender determine your interest rate. Some factors that influence your lender’s perception of your financial security are having a better credit score, how manageable your debt is, if you have good standing with your insurer and your income level. These are all likely to qualify you for a lower interest rate. If not, you can plan out what your monthly payments will be with a higher interest rate and try to make it as manageable as possible.


If you’d like to learn more about your financing options in York, PA, give us a call or stop by at 1885 Whiteford Road, York, PA 17402. We look forward to serving our customers from Hanover, Lancaster and Elizabethtown.