New Car and Used Car Financing: What’s the Difference?
You might think there’s a big difference between financing a new car and financing a used car. Here at Joe Bowman Auto Plaza, there really isn’t much difference at all!
Sometimes, car manufacturers offer special rates through select lenders that are tied to that brand. These rates are offered only a particular model for those consumers who have higher credit scores, but that is outside of our financing department.
That’s why, generally speaking, the difference between new car and used car financing comes down to the price tag. New cars are a greater investment than pre-owned vehicles. So more money is required, but that’s where the difference ends.
There are, however, three requirements for both types of financing.
3 New and Used Car Financing Requirements
Whether you buy a new or used car, there are three aspects that every lender looks at:
• Your credit rating
• Your budget
• Loan pre-qualification
All three are essential to the car buying process but your credit rating determines everything else because it’s a reliable indicator of your financial trustworthiness. The better your credit rating, the better the interest rate for your loan amount.
Auto Car Financing Options
Here at Joe Bowman Auto Plaza, we have a large network of car financing lenders to work with. That means we can shop around to find the best rate for your new or used car.
What’s more, we have some of the best auto loan rates in the Harrisonburg area. We encourage you to shop around. You’ll find that we offer rates that meet or beat local Harrisonburg lending institutions.
When you choose to work with our financing team, you’ll get a simple interest loan that allows you to pay off your loan early without any pre-payment penalties. And the process for approval is quicker.
If you choose to work with your bank, we can process all of their paperwork including ours, but it will take a bit longer. That’s because your lender has to make sure that all the submitted paperwork is correct and in order.
When you work directly with our Harrisonburg car dealership, the process is streamlined. One action step we do recommend for both new car and used car financing: get financial pre-approval before you start looking for a vehicle.
This allows you to take control of the car buying process. You know exactly how much you can afford which makes buying a car that much easier.
When you’re ready to buy a car, turn to the pros at Joe Bowman Auto Plaza. We can help you find the right car, truck, or SUV for lifestyle and budget.
Sometimes, car manufacturers offer special rates through select lenders that are tied to that brand. These rates are offered only a particular model for those consumers who have higher credit scores, but that is outside of our financing department.
That’s why, generally speaking, the difference between new car and used car financing comes down to the price tag. New cars are a greater investment than pre-owned vehicles. So more money is required, but that’s where the difference ends.
There are, however, three requirements for both types of financing.
3 New and Used Car Financing Requirements
Whether you buy a new or used car, there are three aspects that every lender looks at:
• Your credit rating
• Your budget
• Loan pre-qualification
All three are essential to the car buying process but your credit rating determines everything else because it’s a reliable indicator of your financial trustworthiness. The better your credit rating, the better the interest rate for your loan amount.
Auto Car Financing Options
Here at Joe Bowman Auto Plaza, we have a large network of car financing lenders to work with. That means we can shop around to find the best rate for your new or used car.
What’s more, we have some of the best auto loan rates in the Harrisonburg area. We encourage you to shop around. You’ll find that we offer rates that meet or beat local Harrisonburg lending institutions.
When you choose to work with our financing team, you’ll get a simple interest loan that allows you to pay off your loan early without any pre-payment penalties. And the process for approval is quicker.
If you choose to work with your bank, we can process all of their paperwork including ours, but it will take a bit longer. That’s because your lender has to make sure that all the submitted paperwork is correct and in order.
When you work directly with our Harrisonburg car dealership, the process is streamlined. One action step we do recommend for both new car and used car financing: get financial pre-approval before you start looking for a vehicle.
This allows you to take control of the car buying process. You know exactly how much you can afford which makes buying a car that much easier.
When you’re ready to buy a car, turn to the pros at Joe Bowman Auto Plaza. We can help you find the right car, truck, or SUV for lifestyle and budget.
