So, unless you are one of the lucky, and rare folks who have the means to pay for a vehicle outright, chances are, when it comes time for you to buy a new one, you will have to get financing to cover some or all of your purchase. And finding the right financing is something that can affect you for the next 5 or even 7 years.
Of course there are a lot of questions to consider when securing financing and so we thought we’d address them one by one.
– Should I check my credit first?
Yes. It is always a good idea to get a credit check before you apply for any kind of financing. This will give you an idea of where you stand, and how much vehicle you will be able to afford. Consumers are entitled to one free credit report each year through Equifax , Trans Union,and Experian.
Several other online resources also offer free credit reports.
– Should I get credit lined up before I step on the lot?
Not necessarily. Knudtsen Chevrolet has a lot of different banks and credit unions we work with, for people with all kinds of different financing needs. Chances are we will be able to find the right fit for you.
– Will having my credit “pulled” result in a reduced score?
Well, kind of. Most of the time if you have several inquiries on your credit at around the same time, it will only reduce your score by a few points, which is negligible.
Eve Knudtsen says, “One of the advantages to working with us is that we are very selective about who we send our customer’s credit applications to. We don’t ‘shotgun’ our customer’s application to a bunch of lenders. We know which lenders are likely to return the best results for that particular customer. This saves time, as well as having unnecessary inquiries on someone’s credit. We find that over 80% of our customers are able to get financing, which is pretty good.”
– Should I use a credit union or a bank?
Knudtsen does a lot of business with both, and GM also does business through many banks and can get favorable terms for customers. Every situation is different, and our experience can help you navigate through some of the confusion.
– What if I still owe money on my trade, or I owe more than the trade is worth?
In today’s economy, this can be fairly common. We have seen a lot of this over the past several years. There are options available, and most of our customers are surprised to find that we can help them through the process and get them into the car or truck they want
– Should I buy or lease?
Well, it depends. Just what you wanted to hear right? Leasing is becoming a more viable option for people and Knudtsen is seeing more of our customers choosing to lease every day.
Eve says, “Right now we’re at about 20% and we lease a lot of Silverados and Cruzes. In fact I’m leasing a vehicle myself, right now. The great thing about a lease is you are only paying for what you use, and at the end of a lease you have several options available to you. Mileage and other factors can be structured upfront. Also, with included maintenance, leasing can be a great option for people.”
Financing can be a fairly complex topic and we could dedicate pages to it. These are just a few of the most common questions our customers have had. As you might have noticed this blog has couple of similar themes to the others in this series;
#1 Knudtsen Chevrolet wants you to have a fantastic buying experience and wants to have customers for life. We will do everything we can to not only help you find the vehicle of your dreams, but also make the buying, service and customer experience the best it can be.
#2 Knudtsen Chevrolet has 3 generations of experience in all facets of the vehicle purchase. We can help you every step of the way and take a lot of the worry and doubt out of the process. From research, to trade, to financing we will make sure that you are given all of the information and are treated fairly.
This is the way that we do business and the way that we have been able to help many of our customers buy their 2nd and 3rd vehicles here and even have families that have generations of happy Knudtsen Chevrolet customers.
Whatever your vehicle needs, Knudtsen Chevrolet is here to help.