There are three data sets that determine your monthly auto payments; how much you can borrow, the term of your loan, and the interest rate you are granted. Terms of auto loans are usually between 36 and 60 months. It can be stretch out however to lower the monthly payment (by doing this you are increasing the amount you will pay over the entire term of the loan).
All that remains is the interest rate. This rate is also within your control. Just be prepared! Most auto lenders will look at one of your FICO® scores to determine the rate they will offer you.
At Federal Credit Repair Services, denisemanniello.com , we have been helping a lot of our customers navigate step by step thru the car buying process simply and easily. Call them for a FREE 15 minute phone consultation at 201-661-8330.
While you can negotiate the amount and term length of your loan, you cannot negotiate your FICO score at the dealership. Your FICO score is a representation of your risk to the auto lender. A good FICO score means you’re less risky of a borrower and can be offered a lower interest rate. A bad FICO score can mean you will not qualify for the auto loan. Or it can mean you will be offered a very high interest rate.
At Federal Credit Repair Services we recommend you call the auto lender and ask what APR Rates go with what FICO scores. From there you can asses where you want to be (that’s the control part).
The rate chart to the right shows the difference in monthly payments between the best and worst score FICO score ranges. You can see firsthand why it is so important to have the best possible FICO score when you are in a car (or any other) buying decision.
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