Unless you are one of the lucky few who can pay for your new GMC with cash upfront, you will be looking to get financing. Because nearly every driver needs financing, it is easy to complete the process and be approved, even right at your Milton dealership. To make the process easier and save some money along the way, consider these tips.
Read Your Credit Report
Before you ever set foot in a bank or the GMC dealership, take the time to read a copy of your credit report. You want to make sure that all the information is correct. Looking at your report also gives you an idea of how a potential lender will view you. If you know you will be buying a GMC in the next half a year or so, then see if you can improve your credit score before then, although this isn’t always possible.
Don’t Be Afraid to Compare
In most cases, people with excellent credit will get a good interest rate no matter where they choose to get financed. Because of this, you can typically get away with just seeing the financing offers the GMC dealership has for you. Those who have OK credit or poor credit will want to do a bit more research to see what types of rates they can expect. Make sure to include the dealership in your research, as it will sometimes offer the best option.
Know When to Say No
Lenders always want to offer you a higher interest rate since this is where they make their money. Because of that, you need to know the type of rate that should be offered. If a lender gives you an obscenely high rate, don’t be afraid to walk away. This is part of the reason why you should compare offers before choosing one. As a guideline, good credit should get you an APR in the single digits while average credit will be close to 10 or 12 percent. If you have bad credit, expect something at 15 percent or maybe higher.
What to Do if Rejected
Unfortunately, some people will be rejected for a car loan. When this happens, you shouldn’t get discouraged; instead, take the time to figure out why you were rejected and work to correct it. Rejection is usually because of a low credit score or poor credit history, but there are other possible reasons. If you are rejected, ask the potential lender what other options you have; lenders will frequently offer advice because they want you to work with them so they can earn interest.
One of the easiest ways to get financed for your GMC is to work with the friendly staff at McKenzie Motors. Our team will help you get the vehicle of your dreams with an affordable interest rate so you can start driving it around Milton, Florida, right away.