Ask These Questions Before You Accept an Auto Loan

financing in Dearborn

Whether you’re in the market for your first automobile or it’s been a while since you purchased a vehicle, you may have some questions. If you have questions about GMC financing, the experts in our GMC finance center will be glad to answer them.

With a lot of motorists being curious about auto loans, we’ve put together a list of questions you should ask before you agree to a car loan.

What’s the Difference Between the Interest Rate and APR?

Although many motorists think otherwise, the interest rate and annual percentage rate or APR aren’t the same thing. The interest rate is the percentage charged on the funds borrowed from a lender. Your APR accounts for the interest rate as well as all the other costs of borrowing, such as the loan processing fee. Between the two, the APR is the number you should focus on.

How Will my Credit Score Impact the Terms of my Loan?

Many drivers ask the team at our GMC dealership in Dearborn, MI about the impact their credit score will have on their loan. The better your credit score is, the more favorable the terms of your loan will be.

While that’s the case, we can still help you secure an auto loan if you have no or poor credit. Taking out a loan and making your payments on time can help you establish a credit history or improve your existing credit score over time.

Can I Trade in my Current Vehicle?

Sell Your Car

Trading in your current car and using the proceeds as a down payment on another vehicle will help reduce the overall cost of your loan because you’ll end up borrowing less money. We rely on area drivers to maintain our pre-owned car inventory, so we hope you’ll sell us your car.

Is There a Penalty for Paying my Loan Off Early?

Drivers who plan to finance a heavy-duty work truck like the GMC Sierra 3500 HD, an SUV like the Buick Encore, or another automobile should always ask this question. Loans differ in the regard, so there is no one set answer to this inquiry, making it all the more important to ask about this.

Does my Loan Include a Protection Plan?

A Buick Protection Plan is something you may want to add to your transaction to protect your investment. The cost of the plan can be rolled into your auto loan.

More Questions?

If you don’t see your inquiry on our list, don’t hesitate to contact or visit LaFontaine Buick GMC Dearborn.

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