GMC Financing: What to Avoid When Financing a New Vehicle
Once you’ve found a model that suits your needs, you’ll need to decide if you’re paying for the car upfront or over time with GMC financing. Most customers opt to finance their vehicle since it allows you to pay for your vehicle in small amounts over time, but there are a few things to remember while financing to ensure you’re getting the best possible deal.
To help you better understand financing, our LaFontaine Buick GMC Dearborn team has created this guide.
Not Making a Budget
Before you even begin looking at models, you should create a budget that matches your current income, so you never feel overwhelmed with your monthly payments. If you can’t afford a payment, you’ll quickly start accruing interest and debt that can affect your credit score and potentially future car deals.
Choosing A Term That’s Too Long
When signing a loan deal, the longer you make it the less you’ll pay monthly. This can seem tempting, but it’s important to balance the length with the value of your vehicle so that you don’t go “upside down” on your loan. As a general rule, try signing a deal that’s 60 months or shorter.
Not Knowing Your Credit Score
Another thing you’ll want to know before financing your GMC vehicle is your credit score. The higher your credit score is, the less interest you’ll have to pay on your monthly payments. If your score is on the lower end, it could be a good idea to build up credit before attempting to finance a vehicle.
Not Getting Pre-approved
Another excellent way to prepare yourself before financing your vehicle is to get pre-approved for a loan. On our website, you’ll find a number of financing tools including a payment calculator and a financing application so you can get pre-approved for a deal.
Visit LaFontaine Buick GMC Dearborn For More Info
Whether you’re looking to finance the GMC Yukon or the Buick Enclave, our team of experts will be more than happy to help you out. Just stop by our GMC dealership near Detroit, MI, to learn more!