Ask Our Finance Expert:FAQs with Business Manager, James Edwards
Welcome to Carolina Auto Direct, your go-to source for all things automotive! Our Business Manager, James Edwards, is an authority in the realm of auto financing and is here to address your inquiries.
Our used car dealership in Lincolnton is dedicated to offering competitive prices, interest rates and dependable financing advice to our esteemed customers. Explore the FAQs below to gain insights on how to obtain an outstanding deal on your next car purchase.
Your Finance Questions Answered!
What are current interest rates to buy a car?
The national average for auto loan interest rates ranges between 5.99% and 10.99%, contingent upon credit standing and the loan term.
How do I get a favorable interest rate?
To secure a favorable interest rate, we recommend applying a 20% down payment on your vehicle financing, maintaining a strong credit history and demonstrating stable job income.
How much of a down payment do I need to finance a car?
We advise applying a down payment between 10% to 20%. However, in certain situations, we may be able to approve financing without requiring a down payment.
Does my credit score impact my loan rate?
A consumer's credit score significantly influences their auto loan rate. Lower scores typically result in higher rates.
I have a low credit score -- can I still finance a car?
Certainly. We collaborate with numerous lenders that cater to various credit score profiles, enhancing the likelihood of securing financing.
I don’t have credit history yet -- can I still finance a car?
For the best chance of obtaining financing, we recommend including a co-buyer to bolster your credit application. However, with an adequate down payment and the appropriate vehicle, we may be able to approve financing without a co-buyer.
What's the best length for a car loan?
A 60-month term is generally recommended as the optimal length for a car loan. Nevertheless, if you aim to reduce your monthly payments, we can explore longer terms of 72, 75 or 84 months.
Can you offer a better interest rate than my pre-approved rate?
Absolutely! We routinely surpass the rates offered by local banks and credit unions.
Can I reduce my monthly car payments down the road?
As long as you consistently make your current payments on time, you should have the option to refinance your loan and potentially lower your monthly payments in the future.
Can I sell my car while I'm still paying for it?
Yes, you can sell your car while making payments. However, you will be responsible for paying off your car loan to provide the new buyer with a title.
Can I add a warranty when I buy a car?
Indeed! We offer extended service contracts on a wide variety of vehicles, including campers and motorcycles.